Correlation Between Inogen and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Inogen and Meta Platforms 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 Inogen and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Meta Platforms, you can compare the effects of market volatilities on Inogen and Meta Platforms 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 Inogen with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Meta Platforms.
Diversification Opportunities for Inogen and Meta Platforms
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inogen and Meta is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Inogen 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 Inogen Inc are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Inogen i.e., Inogen and Meta Platforms go up and down completely randomly.
Pair Corralation between Inogen and Meta Platforms
If you would invest 629.00 in Inogen Inc on December 30, 2023 and sell it today you would earn a total of 178.00 from holding Inogen Inc or generate 28.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Inogen Inc vs. Meta Platforms
Performance |
Timeline |
Inogen Inc |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Inogen and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inogen and Meta Platforms
The main advantage of trading using opposite Inogen and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Inogen vs. TFI International | Inogen vs. Constellation Brands Class | Inogen vs. Zevia Pbc | Inogen vs. Lindblad Expeditions Holdings |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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