Correlation Between Insignia Systems and Petros Pharmaceuticals

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

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

Diversification Opportunities for Insignia Systems and Petros Pharmaceuticals

0.0

Correlation Coefficient

Insignia Systems  Petros Pharmaceuticals

Pay attention - limited upside

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

Pair Corralation between Insignia Systems and Petros Pharmaceuticals

If you would invest (100.00) in Insignia Systems on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Insignia Systems 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

Insignia Systems  vs.  Petros Pharmaceuticals

Insignia Systems

Risk-Adjusted Performance

Very Weak

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

Petros Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Petros Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Insignia Systems and Petros Pharmaceuticals

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

The idea behind Insignia Systems and Petros Pharmaceuticals 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.