Correlation Between Ingen Technologies and Medtronic PLC
Can any of the company-specific risk be diversified away by investing in both Ingen Technologies and Medtronic PLC 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 Ingen Technologies and Medtronic PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingen Technologies and Medtronic PLC, you can compare the effects of market volatilities on Ingen Technologies and Medtronic PLC 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 Ingen Technologies with a short position of Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingen Technologies and Medtronic PLC.
Diversification Opportunities for Ingen Technologies and Medtronic PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ingen and Medtronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ingen Technologies and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC and Ingen Technologies 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 Ingen Technologies are associated (or correlated) with Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of Ingen Technologies i.e., Ingen Technologies and Medtronic PLC go up and down completely randomly.
Pair Corralation between Ingen Technologies and Medtronic PLC
Given the investment horizon of 90 days Ingen Technologies is expected to generate 104.68 times more return on investment than Medtronic PLC. However, Ingen Technologies is 104.68 times more volatile than Medtronic PLC. It trades about 0.13 of its potential returns per unit of risk. Medtronic PLC is currently generating about -0.02 per unit of risk. If you would invest 0.01 in Ingen Technologies on January 26, 2024 and sell it today you would lose (0.01) from holding Ingen Technologies or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingen Technologies vs. Medtronic PLC
Performance |
| Timeline |
| Ingen Technologies |
| Medtronic PLC |
Ingen Technologies and Medtronic PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingen Technologies and Medtronic PLC
The main advantage of trading using opposite Ingen Technologies and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingen Technologies position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.| Ingen Technologies vs. Medtronic PLC | Ingen Technologies vs. CONMED | Ingen Technologies vs. Glaukos Corp | Ingen Technologies vs. Integer Holdings Corp |
| Medtronic PLC vs. Orthopediatrics Corp | Medtronic PLC vs. Sight Sciences | Medtronic PLC vs. Iradimed Co | Medtronic PLC vs. PulmonxCorp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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