Correlation Between Inspira Technologies and NanoVibronix

Can any of the company-specific risk be diversified away by investing in both Inspira Technologies and NanoVibronix 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 NanoVibronix 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 NanoVibronix, you can compare the effects of market volatilities on Inspira Technologies and NanoVibronix 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 NanoVibronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspira Technologies and NanoVibronix.

Diversification Opportunities for Inspira Technologies and NanoVibronix

-0.27

Correlation Coefficient

Inspira Technologies  NanoVibronix

Very good diversification

The 3 months correlation between Inspira and NanoVibronix is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inspira Technologies Oxy and NanoVibronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoVibronix 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 NanoVibronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoVibronix has no effect on the direction of Inspira Technologies i.e., Inspira Technologies and NanoVibronix go up and down completely randomly.

Pair Corralation between Inspira Technologies and NanoVibronix

Assuming the 90 days horizon Inspira Technologies Oxy is expected to generate 3.55 times more return on investment than NanoVibronix. However, Inspira Technologies is 3.55 times more volatile than NanoVibronix. It trades about 0.05 of its potential returns per unit of risk. NanoVibronix is currently generating about -0.01 per unit of risk. If you would invest  33.00  in Inspira Technologies Oxy on September 21, 2024 and sell it today you would lose (9.00) from holding Inspira Technologies Oxy or give up 27.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Inspira Technologies Oxy  vs.  NanoVibronix

Inspira Technologies Oxy

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inspira Technologies Oxy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Inspira Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

NanoVibronix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NanoVibronix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, NanoVibronix 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 NanoVibronix

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

The idea behind Inspira Technologies Oxy and NanoVibronix 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.