Correlation Between Aspira Womens and InspireMD

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Can any of the company-specific risk be diversified away by investing in both Aspira Womens and InspireMD 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 Aspira Womens and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspira Womens Health and InspireMD, you can compare the effects of market volatilities on Aspira Womens and InspireMD 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 Aspira Womens with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspira Womens and InspireMD.

Diversification Opportunities for Aspira Womens and InspireMD

-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Aspira and InspireMD is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Aspira Womens i.e., Aspira Womens and InspireMD go up and down completely randomly.

Pair Corralation between Aspira Womens and InspireMD

Considering the 90-day investment horizon Aspira Womens Health is expected to under-perform the InspireMD. In addition to that, Aspira Womens is 1.67 times more volatile than InspireMD. It trades about -0.03 of its total potential returns per unit of risk. InspireMD is currently generating about -0.01 per unit of volatility. If you would invest  274.00  in InspireMD on October 5, 2024 and sell it today you would lose (11.00) from holding InspireMD or give up 4.01% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aspira Womens Health  vs.  InspireMD

 Performance 
       Timeline  
Aspira Womens Health 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
InspireMD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days InspireMD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, InspireMD is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Aspira Womens and InspireMD Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aspira Womens and InspireMD

The main advantage of trading using opposite Aspira Womens and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspira Womens position performs unexpectedly, InspireMD 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 InspireMD will offset losses from the drop in InspireMD's long position.
The idea behind Aspira Womens Health and InspireMD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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