Correlation Between Icecure Medical and Premier Biomedical

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

By analyzing existing cross correlation between Icecure Medical and Premier Biomedical, you can compare the effects of market volatilities on Icecure Medical and Premier Biomedical 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 Premier Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Premier Biomedical.

Diversification Opportunities for Icecure Medical and Premier Biomedical

-0.18

Correlation Coefficient

Icecure Medical  Premier Biomedical

Good diversification

The 3 months correlation between Icecure and Premier is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Premier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Biomedical 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 Premier Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Biomedical has no effect on the direction of Icecure Medical i.e., Icecure Medical and Premier Biomedical go up and down completely randomly.

Pair Corralation between Icecure Medical and Premier Biomedical

Given the investment horizon of 90 days Icecure Medical is expected to generate 3.41 times less return on investment than Premier Biomedical. But when comparing it to its historical volatility, Icecure Medical is 3.18 times less risky than Premier Biomedical. It trades about 0.03 of its potential returns per unit of risk. Premier Biomedical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.07  in Premier Biomedical on December 29, 2024 and sell it today you would lose (0.02) from holding Premier Biomedical or give up 28.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Icecure Medical  vs.  Premier Biomedical

Icecure Medical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Icecure Medical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Icecure Medical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Premier Biomedical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Premier Biomedical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, Premier Biomedical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Icecure Medical and Premier Biomedical

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

The idea behind Icecure Medical and Premier Biomedical 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.