Correlation Between Eargo, and Icad

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

Diversification Opportunities for Eargo, and Icad

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between Eargo, and Icad is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eargo, Inc and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Eargo, 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 Eargo, Inc are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Eargo, i.e., Eargo, and Icad go up and down completely randomly.

Pair Corralation between Eargo, and Icad

If you would invest  156.00  in icad inc on September 5, 2024 and sell it today you would earn a total of  14.00  from holding icad inc or generate 8.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy2.38%
ValuesDaily Returns

Eargo, Inc  vs.  icad inc

 Performance 
       Timeline  
Eargo, Inc 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in icad inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Eargo, and Icad Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eargo, and Icad

The main advantage of trading using opposite Eargo, and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eargo, position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.
The idea behind Eargo, Inc and icad inc 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.
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 CEOs Directory module to screen CEOs from public companies around the world.

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