Correlation Between Inogen and Vivos Therapeutics

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

By analyzing existing cross correlation between Inogen Inc and Vivos Therapeutics, you can compare the effects of market volatilities on Inogen and Vivos Therapeutics 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 Vivos Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Vivos Therapeutics.

Diversification Opportunities for Inogen and Vivos Therapeutics

0.08

Correlation Coefficient

Inogen  Vivos Therapeutics

Significant diversification

The 3 months correlation between Inogen and Vivos is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics 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 Vivos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Therapeutics has no effect on the direction of Inogen i.e., Inogen and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between Inogen and Vivos Therapeutics

Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Vivos Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Inogen Inc is 1.59 times less risky than Vivos Therapeutics. The stock trades about -0.19 of its potential returns per unit of risk. The Vivos Therapeutics is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest  283.00  in Vivos Therapeutics on September 20, 2024 and sell it today you would earn a total of  183.00  from holding Vivos Therapeutics or generate 64.66% return on investment over 90 days.

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

Inogen Inc  vs.  Vivos Therapeutics

Inogen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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.

Vivos Therapeutics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inogen and Vivos Therapeutics

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

The idea behind Inogen Inc and Vivos Therapeutics 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.