Correlation Between Inogen and Apyx Medical

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

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

Diversification Opportunities for Inogen and Apyx Medical

-0.24

Correlation Coefficient

Inogen  Apyx Medical

Very good diversification

The 3 months correlation between Inogen and Apyx is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Apyx Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical 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 Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical has no effect on the direction of Inogen i.e., Inogen and Apyx Medical go up and down completely randomly.

Pair Corralation between Inogen and Apyx Medical

Given the investment horizon of 90 days Inogen Inc is expected to generate 1.13 times more return on investment than Apyx Medical. However, Inogen is 1.13 times more volatile than Apyx Medical. It trades about 0.09 of its potential returns per unit of risk. Apyx Medical is currently generating about -0.01 per unit of risk. If you would invest  783.00  in Inogen Inc on June 29, 2024 and sell it today you would earn a total of  192.00  from holding Inogen Inc or generate 24.52% return on investment over 90 days.

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

Inogen Inc  vs.  Apyx Medical

Inogen Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Inogen Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Inogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Apyx Medical

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Inogen and Apyx Medical

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

The idea behind Inogen Inc and Apyx 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.