Correlation Between InspireMD and Ingen Technologies

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

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

Diversification Opportunities for InspireMD and Ingen Technologies

0.0

Correlation Coefficient

InspireMD  Ingen Technologies

Pay attention - limited upside

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

Pair Corralation between InspireMD and Ingen Technologies

Given the investment horizon of 90 days InspireMD is expected to generate 22.88 times less return on investment than Ingen Technologies. But when comparing it to its historical volatility, InspireMD is 17.26 times less risky than Ingen Technologies. It trades about 0.06 of its potential returns per unit of risk. Ingen Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Ingen Technologies on October 11, 2024 and sell it today you would lose (0.01) from holding Ingen Technologies or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

InspireMD  vs.  Ingen Technologies

InspireMD

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InspireMD are ranked lower than 3 (%) 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 February 2025.

Ingen Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingen Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ingen Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with InspireMD and Ingen Technologies

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

The idea behind InspireMD and Ingen 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..