Correlation Between InMode and 63254ABD9

Can any of the company-specific risk be diversified away by investing in both InMode and 63254ABD9 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 63254ABD9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between InMode and NAB 35 09 JUN 25, you can compare the effects of market volatilities on InMode and 63254ABD9 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 63254ABD9. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and 63254ABD9.

Diversification Opportunities for InMode and 63254ABD9

0.28

Correlation Coefficient

InMode  63254ABD9

Modest diversification

The 3 months correlation between InMode and 63254ABD9 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding InMode and NAB 35 09 JUN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAB 35 09 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 63254ABD9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAB 35 09 has no effect on the direction of InMode i.e., InMode and 63254ABD9 go up and down completely randomly.

Pair Corralation between InMode and 63254ABD9

Given the investment horizon of 90 days InMode is expected to generate 6.51 times more return on investment than 63254ABD9. However, InMode is 6.51 times more volatile than NAB 35 09 JUN 25. It trades about 0.04 of its potential returns per unit of risk. NAB 35 09 JUN 25 is currently generating about -0.17 per unit of risk. If you would invest  1,641  in InMode on September 21, 2024 and sell it today you would earn a total of  78.00  from holding InMode or generate 4.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	49.21%
Values	Daily Returns

InMode  vs.  NAB 35 09 JUN 25

InMode

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InMode are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting primary indicators, InMode may actually be approaching a critical reversion point that can send shares even higher in January 2025.

NAB 35 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAB 35 09 JUN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 63254ABD9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with InMode and 63254ABD9

The main advantage of trading using opposite InMode and 63254ABD9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, 63254ABD9 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 63254ABD9 will offset losses from the drop in 63254ABD9's long position.

The idea behind InMode and NAB 35 09 JUN 25 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 Stocks Directory module to find actively traded stocks across global markets.