Correlation Between Laboratory and Icecure Medical

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

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

Diversification Opportunities for Laboratory and Icecure Medical

0.51

Correlation Coefficient

Laboratory  Icecure Medical

Very weak diversification

The 3 months correlation between Laboratory and Icecure is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Laboratory 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 Laboratory of are associated (or correlated) with Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Laboratory i.e., Laboratory and Icecure Medical go up and down completely randomly.

Pair Corralation between Laboratory and Icecure Medical

Allowing for the 90-day total investment horizon Laboratory is expected to generate 3.55 times less return on investment than Icecure Medical. But when comparing it to its historical volatility, Laboratory of is 4.03 times less risky than Icecure Medical. It trades about 0.03 of its potential returns per unit of risk. Icecure Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  112.00  in Icecure Medical on December 26, 2024 and sell it today you would earn a total of  2.00  from holding Icecure Medical or generate 1.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Laboratory of  vs.  Icecure Medical

Laboratory

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Laboratory of are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Laboratory is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Icecure Medical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Icecure Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Icecure Medical may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Laboratory and Icecure Medical

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

The idea behind Laboratory of and Icecure Medical 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.