Correlation Between Inspira Technologies and G Medical

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

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

Diversification Opportunities for Inspira Technologies and G Medical

0.16

Correlation Coefficient

Inspira Technologies  G Medical

Average diversification

The 3 months correlation between Inspira and GMVDW is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Inspira Technologies Oxy and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations and Inspira Technologies 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 Inspira Technologies Oxy are associated (or correlated) with G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Inspira Technologies i.e., Inspira Technologies and G Medical go up and down completely randomly.

Pair Corralation between Inspira Technologies and G Medical

If you would invest  43.00  in Inspira Technologies Oxy on September 2, 2024 and sell it today you would lose (14.00) from holding Inspira Technologies Oxy or give up 32.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Inspira Technologies Oxy  vs.  G Medical Innovations

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 abnormal basic indicators, Inspira Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

G Medical Innovations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, G Medical is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Inspira Technologies and G Medical

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

The idea behind Inspira Technologies Oxy and G Medical Innovations 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.