Correlation Between Inspire Medical and AFFLUENT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Inspire Medical and AFFLUENT MEDICAL 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 Inspire Medical and AFFLUENT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspire Medical Systems and AFFLUENT MEDICAL SAS, you can compare the effects of market volatilities on Inspire Medical and AFFLUENT MEDICAL 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 Inspire Medical with a short position of AFFLUENT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspire Medical and AFFLUENT MEDICAL.
Diversification Opportunities for Inspire Medical and AFFLUENT MEDICAL
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inspire and AFFLUENT is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Inspire Medical Systems and AFFLUENT MEDICAL SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFLUENT MEDICAL SAS and Inspire Medical 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 Inspire Medical Systems are associated (or correlated) with AFFLUENT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFLUENT MEDICAL SAS has no effect on the direction of Inspire Medical i.e., Inspire Medical and AFFLUENT MEDICAL go up and down completely randomly.
Pair Corralation between Inspire Medical and AFFLUENT MEDICAL
Assuming the 90 days horizon Inspire Medical Systems is expected to generate 1.49 times more return on investment than AFFLUENT MEDICAL. However, Inspire Medical is 1.49 times more volatile than AFFLUENT MEDICAL SAS. It trades about 0.12 of its potential returns per unit of risk. AFFLUENT MEDICAL SAS is currently generating about 0.01 per unit of risk. If you would invest 7,882 in Inspire Medical Systems on September 1, 2025 and sell it today you would earn a total of 2,778 from holding Inspire Medical Systems or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspire Medical Systems vs. AFFLUENT MEDICAL SAS
Performance |
| Timeline |
| Inspire Medical Systems |
| AFFLUENT MEDICAL SAS |
Inspire Medical and AFFLUENT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspire Medical and AFFLUENT MEDICAL
The main advantage of trading using opposite Inspire Medical and AFFLUENT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspire Medical position performs unexpectedly, AFFLUENT MEDICAL 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 AFFLUENT MEDICAL will offset losses from the drop in AFFLUENT MEDICAL's long position.| Inspire Medical vs. CARSALESCOM | Inspire Medical vs. Information Services International Dentsu | Inspire Medical vs. Teradata Corp | Inspire Medical vs. INTER CARS SA |
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Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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