Correlation Between InspireMD and Electromedical Technologies

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

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

Diversification Opportunities for InspireMD and Electromedical Technologies

0.0

Correlation Coefficient

InspireMD  Electromedical Technologies

Pay attention - limited upside

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

Pair Corralation between InspireMD and Electromedical Technologies

If you would invest  264.00  in InspireMD on December 30, 2024 and sell it today you would earn a total of  6.00  from holding InspireMD or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

InspireMD  vs.  Electromedical Technologies

InspireMD

Risk-Adjusted Performance

Weak

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

Electromedical Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electromedical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Electromedical Technologies is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with InspireMD and Electromedical Technologies

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

The idea behind InspireMD and Electromedical Technologies 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.