Correlation Between Outset Medical and InspireMD
Can any of the company-specific risk be diversified away by investing in both Outset Medical 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 Outset Medical and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outset Medical and InspireMD, you can compare the effects of market volatilities on Outset Medical 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 Outset Medical with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outset Medical and InspireMD.
Diversification Opportunities for Outset Medical and InspireMD
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Outset and InspireMD is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Outset Medical and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Outset Medical 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 Outset Medical 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 Outset Medical i.e., Outset Medical and InspireMD go up and down completely randomly.
Pair Corralation between Outset Medical and InspireMD
Allowing for the 90-day total investment horizon Outset Medical is expected to under-perform the InspireMD. In addition to that, Outset Medical is 1.28 times more volatile than InspireMD. It trades about -0.04 of its total potential returns per unit of risk. InspireMD is currently generating about 0.07 per unit of volatility. 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 Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Outset Medical vs. InspireMD
Performance |
Timeline |
Outset Medical |
InspireMD |
Outset Medical and InspireMD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Outset Medical and InspireMD
The main advantage of trading using opposite Outset Medical and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outset Medical 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.Outset Medical vs. Inari Medical | Outset Medical vs. Clearpoint Neuro | Outset Medical vs. Inspire Medical Systems | Outset Medical vs. Nevro Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |