Correlation Between American Rebel and Inspira Technologies

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

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

Diversification Opportunities for American Rebel and Inspira Technologies

0.01

Correlation Coefficient

American Rebel  Inspira Technologies

Significant diversification

The 3 months correlation between American and Inspira is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings 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 American Rebel 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 American Rebel Holdings 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 American Rebel i.e., American Rebel and Inspira Technologies go up and down completely randomly.

Pair Corralation between American Rebel and Inspira Technologies

Assuming the 90 days horizon American Rebel Holdings is expected to under-perform the Inspira Technologies. But the stock apears to be less risky and, when comparing its historical volatility, American Rebel Holdings is 1.5 times less risky than Inspira Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Inspira Technologies Oxy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Inspira Technologies Oxy on August 31, 2024 and sell it today you would lose (8.00) from holding Inspira Technologies Oxy or give up 21.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

American Rebel Holdings  vs.  Inspira Technologies Oxy

American Rebel Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Rebel Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental drivers, American Rebel showed solid returns over the last few months and may actually be approaching a breakup point.

Inspira Technologies Oxy

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inspira Technologies Oxy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Inspira Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Rebel and Inspira Technologies

The main advantage of trading using opposite American Rebel and Inspira Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel 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 American Rebel Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.