Correlation Between InspireMD and Movano

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

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

Diversification Opportunities for InspireMD and Movano

0.63

Correlation Coefficient

InspireMD  Movano

Poor diversification

The 3 months correlation between InspireMD and Movano is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding InspireMD and Movano Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movano Inc 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 Movano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movano Inc has no effect on the direction of InspireMD i.e., InspireMD and Movano go up and down completely randomly.

Pair Corralation between InspireMD and Movano

Given the investment horizon of 90 days InspireMD is expected to generate 0.65 times more return on investment than Movano. However, InspireMD is 1.54 times less risky than Movano. It trades about -0.01 of its potential returns per unit of risk. Movano Inc is currently generating about -0.13 per unit of risk. If you would invest  287.00  in InspireMD on October 27, 2024 and sell it today you would lose (4.00) from holding InspireMD or give up 1.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

InspireMD  vs.  Movano Inc

InspireMD

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in InspireMD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, InspireMD reported solid returns over the last few months and may actually be approaching a breakup point.

Movano Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Movano Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Movano exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with InspireMD and Movano

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

The idea behind InspireMD and Movano Inc 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 CEOs Directory module to screen CEOs from public companies around the world.