Correlation Between Glaukos Corp and Inari Medical

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

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

Diversification Opportunities for Glaukos Corp and Inari Medical

0.47

Correlation Coefficient

Glaukos Corp  Inari Medical

Very weak diversification

The 3 months correlation between Glaukos and Inari is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Inari Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inari Medical and Glaukos Corp 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 Glaukos Corp are associated (or correlated) with Inari Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inari Medical has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Inari Medical go up and down completely randomly.

Pair Corralation between Glaukos Corp and Inari Medical

If you would invest  8,824  in Glaukos Corp on May 7, 2025 and sell it today you would lose (74.00) from holding Glaukos Corp or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.64%
Values	Daily Returns

Glaukos Corp  vs.  Inari Medical

Glaukos Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Glaukos Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Glaukos Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Inari Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inari Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Inari Medical is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Glaukos Corp and Inari Medical

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

The idea behind Glaukos Corp and Inari Medical 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.