Correlation Between Vivos Therapeutics and InspireMD

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

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

Diversification Opportunities for Vivos Therapeutics and InspireMD

-0.33

Correlation Coefficient

Vivos Therapeutics  InspireMD

Very good diversification

The 3 months correlation between Vivos and InspireMD is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Vivos Therapeutics and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Vivos Therapeutics 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 Vivos Therapeutics are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Vivos Therapeutics i.e., Vivos Therapeutics and InspireMD go up and down completely randomly.

Pair Corralation between Vivos Therapeutics and InspireMD

Given the investment horizon of 90 days Vivos Therapeutics is expected to generate 1.96 times more return on investment than InspireMD. However, Vivos Therapeutics is 1.96 times more volatile than InspireMD. It trades about 0.21 of its potential returns per unit of risk. InspireMD is currently generating about 0.0 per unit of risk. If you would invest  263.00  in Vivos Therapeutics on April 25, 2025 and sell it today you would earn a total of  298.00  from holding Vivos Therapeutics or generate 113.31% return on investment over 90 days.

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

Vivos Therapeutics  vs.  InspireMD

Vivos Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

InspireMD

Risk-Adjusted Performance

Very Weak

Over the last 90 days InspireMD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, InspireMD is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Vivos Therapeutics and InspireMD

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

The idea behind Vivos Therapeutics and InspireMD 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.