Correlation Between Icecure Medical and Bone Biologics

Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Bone Biologics 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 Icecure Medical and Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Icecure Medical and Bone Biologics Corp, you can compare the effects of market volatilities on Icecure Medical and Bone Biologics 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 Icecure Medical with a short position of Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Bone Biologics.

Diversification Opportunities for Icecure Medical and Bone Biologics

-0.64

Correlation Coefficient

Icecure Medical  Bone Biologics

Excellent diversification

The 3 months correlation between Icecure and Bone is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp and Icecure 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 Icecure Medical are associated (or correlated) with Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Icecure Medical i.e., Icecure Medical and Bone Biologics go up and down completely randomly.

Pair Corralation between Icecure Medical and Bone Biologics

Given the investment horizon of 90 days Icecure Medical is expected to generate 0.87 times more return on investment than Bone Biologics. However, Icecure Medical is 1.14 times less risky than Bone Biologics. It trades about 0.22 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about -0.08 per unit of risk. If you would invest  81.00  in Icecure Medical on December 1, 2024 and sell it today you would earn a total of  55.00  from holding Icecure Medical or generate 67.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Icecure Medical  vs.  Bone Biologics Corp

Icecure Medical

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Icecure Medical are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Icecure Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Bone Biologics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bone Biologics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Icecure Medical and Bone Biologics

The main advantage of trading using opposite Icecure Medical and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.

The idea behind Icecure Medical and Bone Biologics Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.