Correlation Between Insulet and Aspira Womens

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

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

Diversification Opportunities for Insulet and Aspira Womens

-0.55

Correlation Coefficient

Insulet  Aspira Womens

Excellent diversification

The 3 months correlation between Insulet and Aspira is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Insulet and Aspira Womens Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspira Womens Health and Insulet 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 Insulet are associated (or correlated) with Aspira Womens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspira Womens Health has no effect on the direction of Insulet i.e., Insulet and Aspira Womens go up and down completely randomly.

Pair Corralation between Insulet and Aspira Womens

Given the investment horizon of 90 days Insulet is expected to generate 0.25 times more return on investment than Aspira Womens. However, Insulet is 3.98 times less risky than Aspira Womens. It trades about -0.05 of its potential returns per unit of risk. Aspira Womens Health is currently generating about -0.36 per unit of risk. If you would invest  27,597  in Insulet on November 29, 2024 and sell it today you would lose (533.00) from holding Insulet or give up 1.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Insulet  vs.  Aspira Womens Health

Insulet

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Insulet are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Insulet is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Insulet and Aspira Womens

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

The idea behind Insulet and Aspira Womens Health 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.