Correlation Between InspireMD and UFP Technologies

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

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

Diversification Opportunities for InspireMD and UFP Technologies

-0.52

Correlation Coefficient

InspireMD  UFP Technologies

Excellent diversification

The 3 months correlation between InspireMD and UFP is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding InspireMD and UFP Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UFP Technologies 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 UFP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UFP Technologies has no effect on the direction of InspireMD i.e., InspireMD and UFP Technologies go up and down completely randomly.

Pair Corralation between InspireMD and UFP Technologies

Given the investment horizon of 90 days InspireMD is expected to generate 2.08 times less return on investment than UFP Technologies. In addition to that, InspireMD is 1.38 times more volatile than UFP Technologies. It trades about 0.03 of its total potential returns per unit of risk. UFP Technologies is currently generating about 0.09 per unit of volatility. If you would invest  19,742  in UFP Technologies on May 4, 2025 and sell it today you would earn a total of  2,915  from holding UFP Technologies or generate 14.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

InspireMD  vs.  UFP Technologies

InspireMD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in InspireMD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, InspireMD may actually be approaching a critical reversion point that can send shares even higher in September 2025.

UFP Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UFP Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, UFP Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with InspireMD and UFP Technologies

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

The idea behind InspireMD and UFP Technologies 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.