Correlation Between ProSomnus, Common and Inogen

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

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

Diversification Opportunities for ProSomnus, Common and Inogen

-0.1

Correlation Coefficient

ProSomnus, Common  Inogen

Good diversification

The 3 months correlation between ProSomnus, and Inogen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ProSomnus, Common Stock and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and ProSomnus, Common 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 ProSomnus, Common Stock are associated (or correlated) with Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of ProSomnus, Common i.e., ProSomnus, Common and Inogen go up and down completely randomly.

Pair Corralation between ProSomnus, Common and Inogen

Considering the 90-day investment horizon ProSomnus, Common Stock is expected to generate 27.46 times more return on investment than Inogen. However, ProSomnus, Common is 27.46 times more volatile than Inogen Inc. It trades about 0.15 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.09 per unit of risk. If you would invest  0.68  in ProSomnus, Common Stock on June 29, 2024 and sell it today you would earn a total of  0.68  from holding ProSomnus, Common Stock or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.43%
Values	Daily Returns

ProSomnus, Common Stock  vs.  Inogen Inc

ProSomnus, Common Stock

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days ProSomnus, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat inconsistent basic indicators, ProSomnus, Common sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with ProSomnus, Common and Inogen

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

The idea behind ProSomnus, Common Stock and Inogen Inc 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.