Correlation Between InspireMD and OpGen

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

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

Diversification Opportunities for InspireMD and OpGen

-0.41

Correlation Coefficient

InspireMD  OpGen

Very good diversification

The 3 months correlation between InspireMD and OpGen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding InspireMD and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen 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 OpGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpGen Inc has no effect on the direction of InspireMD i.e., InspireMD and OpGen go up and down completely randomly.

Pair Corralation between InspireMD and OpGen

Given the investment horizon of 90 days InspireMD is expected to generate 0.44 times more return on investment than OpGen. However, InspireMD is 2.28 times less risky than OpGen. It trades about 0.07 of its potential returns per unit of risk. OpGen Inc is currently generating about -0.01 per unit of risk. If you would invest  92.00  in InspireMD on September 23, 2024 and sell it today you would earn a total of  208.00  from holding InspireMD or generate 226.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	83.3%
Values	Daily Returns

InspireMD  vs.  OpGen Inc

InspireMD

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InspireMD are ranked lower than 4 (%) 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 January 2025.

OpGen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OpGen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OpGen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with InspireMD and OpGen

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

The idea behind InspireMD and OpGen 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.