Correlation Between InfuSystems Holdings and Opsens

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

By analyzing existing cross correlation between InfuSystems Holdings and Opsens Inc, you can compare the effects of market volatilities on InfuSystems Holdings and Opsens 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 InfuSystems Holdings with a short position of Opsens. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and Opsens.

Diversification Opportunities for InfuSystems Holdings and Opsens

0.0

Correlation Coefficient

InfuSystems Holdings  Opsens

Pay attention - limited upside

The 3 months correlation between InfuSystems and Opsens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Opsens Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opsens Inc and InfuSystems Holdings 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 InfuSystems Holdings are associated (or correlated) with Opsens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opsens Inc has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Opsens go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Opsens

If you would invest (100.00) in Opsens Inc on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Opsens Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

InfuSystems Holdings  vs.  Opsens Inc

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Opsens Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Opsens Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Opsens is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with InfuSystems Holdings and Opsens

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

The idea behind InfuSystems Holdings and Opsens 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.