Correlation Between CONMED and Inogen

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

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

Diversification Opportunities for CONMED and Inogen

0.41

Correlation Coefficient

CONMED  Inogen

Very weak diversification

The 3 months correlation between CONMED and Inogen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and CONMED 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 CONMED 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 CONMED i.e., CONMED and Inogen go up and down completely randomly.

Pair Corralation between CONMED and Inogen

Given the investment horizon of 90 days CONMED is expected to under-perform the Inogen. In addition to that, CONMED is 1.37 times more volatile than Inogen Inc. It trades about -0.36 of its total potential returns per unit of risk. Inogen Inc is currently generating about -0.16 per unit of volatility. If you would invest  975.00  in Inogen Inc on July 28, 2024 and sell it today you would lose (52.00) from holding Inogen Inc or give up 5.33% of portfolio value over 90 days.

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

CONMED  vs.  Inogen Inc

CONMED

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CONMED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Inogen Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inogen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 CONMED and Inogen

The main advantage of trading using opposite CONMED and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONMED 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 CONMED 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.