Correlation Between Inspira Technologies and Tivic Health

Can any of the company-specific risk be diversified away by investing in both Inspira Technologies and Tivic Health 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 Inspira Technologies and Tivic Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inspira Technologies Oxy and Tivic Health Systems, you can compare the effects of market volatilities on Inspira Technologies and Tivic Health 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 Inspira Technologies with a short position of Tivic Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspira Technologies and Tivic Health.

Diversification Opportunities for Inspira Technologies and Tivic Health

0.02

Correlation Coefficient

Inspira Technologies  Tivic Health

Significant diversification

The 3 months correlation between Inspira and Tivic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Inspira Technologies Oxy and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health Systems and Inspira Technologies 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 Inspira Technologies Oxy are associated (or correlated) with Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of Inspira Technologies i.e., Inspira Technologies and Tivic Health go up and down completely randomly.

Pair Corralation between Inspira Technologies and Tivic Health

Given the investment horizon of 90 days Inspira Technologies Oxy is expected to under-perform the Tivic Health. But the stock apears to be less risky and, when comparing its historical volatility, Inspira Technologies Oxy is 2.15 times less risky than Tivic Health. The stock trades about -0.07 of its potential returns per unit of risk. The Tivic Health Systems is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Tivic Health Systems on October 12, 2024 and sell it today you would earn a total of  6.00  from holding Tivic Health Systems or generate 24.0% return on investment over 90 days.

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

Inspira Technologies Oxy  vs.  Tivic Health Systems

Inspira Technologies Oxy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inspira Technologies Oxy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Tivic Health Systems

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tivic Health Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Tivic Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inspira Technologies and Tivic Health

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

The idea behind Inspira Technologies Oxy and Tivic Health Systems 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.