Correlation Between OpGen and Inspira Technologies

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

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

Diversification Opportunities for OpGen and Inspira Technologies

-0.33

Correlation Coefficient

OpGen  Inspira Technologies

Very good diversification

The 3 months correlation between OpGen and Inspira is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding OpGen Inc and Inspira Technologies Oxy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspira Technologies Oxy and OpGen 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 OpGen Inc are associated (or correlated) with Inspira Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspira Technologies Oxy has no effect on the direction of OpGen i.e., OpGen and Inspira Technologies go up and down completely randomly.

Pair Corralation between OpGen and Inspira Technologies

If you would invest  115.00  in Inspira Technologies Oxy on September 12, 2024 and sell it today you would earn a total of  5.00  from holding Inspira Technologies Oxy or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

OpGen Inc  vs.  Inspira Technologies Oxy

OpGen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OpGen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OpGen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Inspira Technologies Oxy

Risk-Adjusted Performance

2 of 100

Insignificant

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 very weak basic indicators, Inspira Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with OpGen and Inspira Technologies

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

The idea behind OpGen Inc and Inspira Technologies Oxy 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.