Correlation Between Inogen and Eargo,

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

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

Diversification Opportunities for Inogen and Eargo,

0.3

Correlation Coefficient

Inogen  Eargo,

Weak diversification

The 3 months correlation between Inogen and Eargo, is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Eargo, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eargo, Inc and Inogen 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 Inogen Inc are associated (or correlated) with Eargo,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eargo, Inc has no effect on the direction of Inogen i.e., Inogen and Eargo, go up and down completely randomly.

Pair Corralation between Inogen and Eargo,

If you would invest  903.00  in Inogen Inc on September 4, 2024 and sell it today you would earn a total of  108.00  from holding Inogen Inc or generate 11.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Inogen Inc  vs.  Eargo, Inc

Inogen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Eargo, Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eargo, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Eargo, is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Inogen and Eargo,

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

The idea behind Inogen Inc and Eargo, Inc 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.