Correlation Between Apyx Medical and InMode
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and InMode at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apyx Medical and InMode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and InMode, you can compare the effects of market volatilities on Apyx Medical and InMode and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apyx Medical with a short position of InMode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and InMode.
Diversification Opportunities for Apyx Medical and InMode
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apyx and InMode is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode and Apyx Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apyx Medical are associated (or correlated) with InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Apyx Medical i.e., Apyx Medical and InMode go up and down completely randomly.
Pair Corralation between Apyx Medical and InMode
Given the investment horizon of 90 days Apyx Medical is expected to under-perform the InMode. In addition to that, Apyx Medical is 2.31 times more volatile than InMode. It trades about -0.07 of its total potential returns per unit of risk. InMode is currently generating about 0.04 per unit of volatility. If you would invest 1,811 in InMode on December 5, 2024 and sell it today you would earn a total of 71.00 from holding InMode or generate 3.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apyx Medical vs. InMode
Performance |
Timeline |
Apyx Medical |
InMode |
Apyx Medical and InMode Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apyx Medical and InMode
The main advantage of trading using opposite Apyx Medical and InMode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, InMode can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in InMode will offset losses from the drop in InMode's long position.Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Insulet | InMode vs. DexCom Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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