Correlation Between Aspira Womens and Inogen

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

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

Diversification Opportunities for Aspira Womens and Inogen

0.69

Correlation Coefficient

Aspira Womens  Inogen

Poor diversification

The 3 months correlation between Aspira and Inogen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Aspira Womens i.e., Aspira Womens and Inogen go up and down completely randomly.

Pair Corralation between Aspira Womens and Inogen

Considering the 90-day investment horizon Aspira Womens is expected to generate 1.37 times less return on investment than Inogen. In addition to that, Aspira Womens is 1.59 times more volatile than Inogen Inc. It trades about 0.11 of its total potential returns per unit of risk. Inogen Inc is currently generating about 0.25 per unit of volatility. If you would invest  899.00  in Inogen Inc on August 12, 2024 and sell it today you would earn a total of  210.00  from holding Inogen Inc or generate 23.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Aspira Womens Health  vs.  Inogen Inc

Aspira Womens Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 very healthy technical and fundamental indicators, Inogen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aspira Womens and Inogen

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

The idea behind Aspira Womens Health and Inogen 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.