Correlation Between Inogen and GlucoTrack

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

Diversification Opportunities for Inogen and GlucoTrack

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Inogen and GlucoTrack is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack and Inogen 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 Inogen Inc are associated (or correlated) with GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Inogen i.e., Inogen and GlucoTrack go up and down completely randomly.

Pair Corralation between Inogen and GlucoTrack

Given the investment horizon of 90 days Inogen Inc is expected to generate 0.27 times more return on investment than GlucoTrack. However, Inogen Inc is 3.74 times less risky than GlucoTrack. It trades about -0.07 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.2 per unit of risk. If you would invest  1,075  in Inogen Inc on September 19, 2024 and sell it today you would lose (163.00) from holding Inogen Inc or give up 15.16% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Inogen Inc  vs.  GlucoTrack

 Performance 
       Timeline  
Inogen Inc 

Risk-Adjusted Performance

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Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
GlucoTrack 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days GlucoTrack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Inogen and GlucoTrack Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Inogen and GlucoTrack

The main advantage of trading using opposite Inogen and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.
The idea behind Inogen Inc and GlucoTrack 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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