Correlation Between InMode and Ono Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both InMode and Ono Pharmaceutical 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 InMode and Ono Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InMode and Ono Pharmaceutical Co, you can compare the effects of market volatilities on InMode and Ono Pharmaceutical 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 InMode with a short position of Ono Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and Ono Pharmaceutical.
Diversification Opportunities for InMode and Ono Pharmaceutical
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InMode and Ono is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding InMode and Ono Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ono Pharmaceutical and InMode 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 InMode are associated (or correlated) with Ono Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ono Pharmaceutical has no effect on the direction of InMode i.e., InMode and Ono Pharmaceutical go up and down completely randomly.
Pair Corralation between InMode and Ono Pharmaceutical
Given the investment horizon of 90 days InMode is expected to generate 0.36 times more return on investment than Ono Pharmaceutical. However, InMode is 2.77 times less risky than Ono Pharmaceutical. It trades about 0.06 of its potential returns per unit of risk. Ono Pharmaceutical Co is currently generating about 0.01 per unit of risk. If you would invest 1,704 in InMode on September 13, 2024 and sell it today you would earn a total of 158.00 from holding InMode or generate 9.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 38.1% |
Values | Daily Returns |
InMode vs. Ono Pharmaceutical Co
Performance |
Timeline |
InMode |
Ono Pharmaceutical |
InMode and Ono Pharmaceutical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with InMode and Ono Pharmaceutical
The main advantage of trading using opposite InMode and Ono Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, Ono Pharmaceutical 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 Ono Pharmaceutical will offset losses from the drop in Ono Pharmaceutical's long position.InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Inari Medical | InMode vs. Insulet |
Ono Pharmaceutical vs. Sanofi ADR | Ono Pharmaceutical vs. Bristol Myers Squibb | Ono Pharmaceutical vs. AstraZeneca PLC ADR | Ono Pharmaceutical vs. Gilead Sciences |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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