Correlation Between EDAP TMS and Icad

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

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

Diversification Opportunities for EDAP TMS and Icad

0.16

Correlation Coefficient

EDAP TMS  Icad

Average diversification

The 3 months correlation between EDAP and Icad is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding EDAP TMS SA and Icad Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icad Inc and EDAP TMS 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 EDAP TMS SA are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icad Inc has no effect on the direction of EDAP TMS i.e., EDAP TMS and Icad go up and down completely randomly.

Pair Corralation between EDAP TMS and Icad

Given the investment horizon of 90 days EDAP TMS SA is expected to generate 2.36 times more return on investment than Icad. However, EDAP TMS is 2.36 times more volatile than Icad Inc. It trades about 0.13 of its potential returns per unit of risk. Icad Inc is currently generating about 0.12 per unit of risk. If you would invest  159.00  in EDAP TMS SA on July 3, 2025 and sell it today you would earn a total of  76.00  from holding EDAP TMS SA or generate 47.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	15.87%
Values	Daily Returns

EDAP TMS SA  vs.  Icad Inc

EDAP TMS SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in EDAP TMS SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, EDAP TMS reported solid returns over the last few months and may actually be approaching a breakup point.

Icad Inc

Risk-Adjusted Performance

Fair

Over the last 90 days Icad Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather uncertain basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EDAP TMS and Icad

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

The idea behind EDAP TMS SA and Icad 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.