Correlation Between InMode and BANNER

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

By analyzing existing cross correlation between InMode and BANNER 2907 01 JAN 42, you can compare the effects of market volatilities on InMode and BANNER 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 BANNER. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and BANNER.

Diversification Opportunities for InMode and BANNER

-0.18

Correlation Coefficient

InMode  BANNER

Good diversification

The 3 months correlation between InMode and BANNER is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding InMode and BANNER 2907 01 JAN 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANNER 2907 01 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 BANNER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANNER 2907 01 has no effect on the direction of InMode i.e., InMode and BANNER go up and down completely randomly.

Pair Corralation between InMode and BANNER

Given the investment horizon of 90 days InMode is expected to generate 1.44 times less return on investment than BANNER. In addition to that, InMode is 1.76 times more volatile than BANNER 2907 01 JAN 42. It trades about 0.06 of its total potential returns per unit of risk. BANNER 2907 01 JAN 42 is currently generating about 0.15 per unit of volatility. If you would invest  7,138  in BANNER 2907 01 JAN 42 on December 30, 2024 and sell it today you would earn a total of  182.00  from holding BANNER 2907 01 JAN 42 or generate 2.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	24.19%
Values	Daily Returns

InMode  vs.  BANNER 2907 01 JAN 42

InMode

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InMode are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, InMode may actually be approaching a critical reversion point that can send shares even higher in April 2025.

BANNER 2907 01

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BANNER 2907 01 JAN 42 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, BANNER may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with InMode and BANNER

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

The idea behind InMode and BANNER 2907 01 JAN 42 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 Commodity Directory module to find actively traded commodities issued by global exchanges.