Correlation Between OpGen and InspireMD

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

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

Diversification Opportunities for OpGen and InspireMD

0.15

Correlation Coefficient

OpGen  InspireMD

Average diversification

The 3 months correlation between OpGen and InspireMD is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding OpGen Inc and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and OpGen 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 OpGen Inc 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 OpGen i.e., OpGen and InspireMD go up and down completely randomly.

Pair Corralation between OpGen and InspireMD

If you would invest  259.00  in InspireMD on October 10, 2024 and sell it today you would earn a total of  12.00  from holding InspireMD or generate 4.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

OpGen Inc  vs.  InspireMD

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.

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.

Pair Trading with OpGen and InspireMD

The main advantage of trading using opposite OpGen and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OpGen 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.

The idea behind OpGen Inc and InspireMD 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.