Correlation Between InMode and 012653AF8

Can any of the company-specific risk be diversified away by investing in both InMode and 012653AF8 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 InMode and 012653AF8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between InMode and ALB 565 01 JUN 52, you can compare the effects of market volatilities on InMode and 012653AF8 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 InMode with a short position of 012653AF8. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and 012653AF8.

Diversification Opportunities for InMode and 012653AF8

-0.57

Correlation Coefficient

InMode  012653AF8

Excellent diversification

The 3 months correlation between InMode and 012653AF8 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding InMode and ALB 565 01 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALB 565 01 and InMode 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 InMode are associated (or correlated) with 012653AF8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALB 565 01 has no effect on the direction of InMode i.e., InMode and 012653AF8 go up and down completely randomly.

Pair Corralation between InMode and 012653AF8

Given the investment horizon of 90 days InMode is expected to generate 2.12 times more return on investment than 012653AF8. However, InMode is 2.12 times more volatile than ALB 565 01 JUN 52. It trades about 0.05 of its potential returns per unit of risk. ALB 565 01 JUN 52 is currently generating about -0.11 per unit of risk. If you would invest  1,706  in InMode on September 15, 2024 and sell it today you would earn a total of  120.00  from holding InMode or generate 7.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

InMode  vs.  ALB 565 01 JUN 52

InMode

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InMode are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, InMode may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ALB 565 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALB 565 01 JUN 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ALB 565 01 JUN 52 investors.

Pair Trading with InMode and 012653AF8

The main advantage of trading using opposite InMode and 012653AF8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, 012653AF8 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 012653AF8 will offset losses from the drop in 012653AF8's long position.

The idea behind InMode and ALB 565 01 JUN 52 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.