Correlation Between NYSE Composite and InspireMD
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and InspireMD 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 NYSE Composite and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and InspireMD, you can compare the effects of market volatilities on NYSE Composite and InspireMD 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 NYSE Composite with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and InspireMD.
Diversification Opportunities for NYSE Composite and InspireMD
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and InspireMD is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and NYSE Composite 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 NYSE Composite are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of NYSE Composite i.e., NYSE Composite and InspireMD go up and down completely randomly.
Pair Corralation between NYSE Composite and InspireMD
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the InspireMD. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 4.45 times less risky than InspireMD. The index trades about -0.41 of its potential returns per unit of risk. The InspireMD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 294.00 in InspireMD on September 24, 2024 and sell it today you would earn a total of 6.00 from holding InspireMD or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NYSE Composite vs. InspireMD
Performance |
Timeline |
NYSE Composite and InspireMD Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
InspireMD
Pair trading matchups for InspireMD
Pair Trading with NYSE Composite and InspireMD
The main advantage of trading using opposite NYSE Composite and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, InspireMD 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 InspireMD will offset losses from the drop in InspireMD's long position.NYSE Composite vs. Kulicke and Soffa | NYSE Composite vs. United Microelectronics | NYSE Composite vs. Chester Mining | NYSE Composite vs. NetEase |
InspireMD vs. Bone Biologics Corp | InspireMD vs. Tivic Health Systems | InspireMD vs. Bluejay Diagnostics | InspireMD vs. Vivos Therapeutics |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |