Correlation Between InspireMD and Vivos

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

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

Diversification Opportunities for InspireMD and Vivos

-0.52

Correlation Coefficient

InspireMD  Vivos

Excellent diversification

The 3 months correlation between InspireMD and Vivos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding InspireMD and Vivos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos 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 Vivos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Inc has no effect on the direction of InspireMD i.e., InspireMD and Vivos go up and down completely randomly.

Pair Corralation between InspireMD and Vivos

Given the investment horizon of 90 days InspireMD is expected to generate 1.54 times less return on investment than Vivos. But when comparing it to its historical volatility, InspireMD is 1.39 times less risky than Vivos. It trades about 0.06 of its potential returns per unit of risk. Vivos Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5.50  in Vivos Inc on October 10, 2024 and sell it today you would earn a total of  9.50  from holding Vivos Inc or generate 172.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

InspireMD  vs.  Vivos Inc

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.

Vivos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vivos is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with InspireMD and Vivos

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

The idea behind InspireMD and Vivos 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.