Correlation Between InspireMD and Lucid Diagnostics

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

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

Diversification Opportunities for InspireMD and Lucid Diagnostics

0.48

Correlation Coefficient

InspireMD  Lucid Diagnostics

Very weak diversification

The 3 months correlation between InspireMD and Lucid is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding InspireMD and Lucid Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Diagnostics and InspireMD 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 InspireMD are associated (or correlated) with Lucid Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Diagnostics has no effect on the direction of InspireMD i.e., InspireMD and Lucid Diagnostics go up and down completely randomly.

Pair Corralation between InspireMD and Lucid Diagnostics

Given the investment horizon of 90 days InspireMD is expected to under-perform the Lucid Diagnostics. In addition to that, InspireMD is 1.51 times more volatile than Lucid Diagnostics. It trades about -0.08 of its total potential returns per unit of risk. Lucid Diagnostics is currently generating about -0.03 per unit of volatility. If you would invest  122.00  in Lucid Diagnostics on October 8, 2025 and sell it today you would lose (9.00) from holding Lucid Diagnostics or give up 7.38% of portfolio value over 90 days.

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

InspireMD  vs.  Lucid Diagnostics

InspireMD

Risk-Adjusted Performance

Weakest

Over the last 90 days InspireMD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Lucid Diagnostics

Risk-Adjusted Performance

Weakest

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

Pair Trading with InspireMD and Lucid Diagnostics

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

The idea behind InspireMD and Lucid Diagnostics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.