Correlation Between Inogen and Predictive Oncology

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

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

Diversification Opportunities for Inogen and Predictive Oncology

-0.17

Correlation Coefficient

Inogen  Predictive Oncology

Good diversification

The 3 months correlation between Inogen and Predictive is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology 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 Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Inogen i.e., Inogen and Predictive Oncology go up and down completely randomly.

Pair Corralation between Inogen and Predictive Oncology

Given the investment horizon of 90 days Inogen Inc is expected to generate 0.89 times more return on investment than Predictive Oncology. However, Inogen Inc is 1.12 times less risky than Predictive Oncology. It trades about 0.09 of its potential returns per unit of risk. Predictive Oncology is currently generating about 0.03 per unit of risk. If you would invest  662.00  in Inogen Inc on May 26, 2025 and sell it today you would earn a total of  113.00  from holding Inogen Inc or generate 17.07% 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.  Predictive Oncology

Inogen Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Inogen Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Inogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Predictive Oncology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Predictive Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Predictive Oncology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Inogen and Predictive Oncology

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

The idea behind Inogen Inc and Predictive Oncology 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.