Correlation Between Crispr Therapeutics and InMode

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

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

Diversification Opportunities for Crispr Therapeutics and InMode

0.05

Correlation Coefficient

Crispr Therapeutics  InMode

Significant diversification

The 3 months correlation between Crispr and InMode is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode and Crispr Therapeutics 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 Crispr Therapeutics AG are associated (or correlated) with InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Crispr Therapeutics i.e., Crispr Therapeutics and InMode go up and down completely randomly.

Pair Corralation between Crispr Therapeutics and InMode

Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 2.16 times more return on investment than InMode. However, Crispr Therapeutics is 2.16 times more volatile than InMode. It trades about 0.2 of its potential returns per unit of risk. InMode is currently generating about -0.02 per unit of risk. If you would invest  3,562  in Crispr Therapeutics AG on May 9, 2025 and sell it today you would earn a total of  2,072  from holding Crispr Therapeutics AG or generate 58.17% return on investment over 90 days.

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

Crispr Therapeutics AG  vs.  InMode

Crispr Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crispr Therapeutics AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Crispr Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

InMode

Risk-Adjusted Performance

Weakest

Over the last 90 days InMode has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, InMode is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Crispr Therapeutics and InMode

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

The idea behind Crispr Therapeutics AG and InMode 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.