Correlation Between NexGel Warrant and Inspira Technologies

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

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

Diversification Opportunities for NexGel Warrant and Inspira Technologies

-0.27

Correlation Coefficient

NexGel Warrant  Inspira Technologies

Very good diversification

The 3 months correlation between NexGel and Inspira is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NexGel Warrant and Inspira Technologies Oxy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspira Technologies Oxy and NexGel Warrant 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 NexGel Warrant are associated (or correlated) with Inspira Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspira Technologies Oxy has no effect on the direction of NexGel Warrant i.e., NexGel Warrant and Inspira Technologies go up and down completely randomly.

Pair Corralation between NexGel Warrant and Inspira Technologies

Assuming the 90 days horizon NexGel Warrant is expected to under-perform the Inspira Technologies. But the stock apears to be less risky and, when comparing its historical volatility, NexGel Warrant is 2.15 times less risky than Inspira Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Inspira Technologies Oxy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Inspira Technologies Oxy on December 21, 2024 and sell it today you would lose (6.00) from holding Inspira Technologies Oxy or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.83%
Values	Daily Returns

NexGel Warrant  vs.  Inspira Technologies Oxy

NexGel Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days NexGel Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Inspira Technologies Oxy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inspira Technologies Oxy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Inspira Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NexGel Warrant and Inspira Technologies

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

The idea behind NexGel Warrant and Inspira Technologies Oxy 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.