Correlation Between InfuSystems Holdings and Inogen

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Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings 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 InfuSystems Holdings and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfuSystems Holdings and Inogen Inc, you can compare the effects of market volatilities on InfuSystems Holdings 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 InfuSystems Holdings with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and Inogen.

Diversification Opportunities for InfuSystems Holdings and Inogen

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between InfuSystems and Inogen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and InfuSystems Holdings 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 InfuSystems Holdings 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 InfuSystems Holdings i.e., InfuSystems Holdings and Inogen go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Inogen

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.22 times more return on investment than Inogen. However, InfuSystems Holdings is 1.22 times more volatile than Inogen Inc. It trades about 0.0 of its potential returns per unit of risk. Inogen Inc is currently generating about -0.06 per unit of risk. If you would invest  922.00  in InfuSystems Holdings on October 11, 2025 and sell it today you would lose (25.00) from holding InfuSystems Holdings or give up 2.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

InfuSystems Holdings  vs.  Inogen Inc

 Performance 
       Timeline  
InfuSystems Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, InfuSystems Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
Inogen Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

InfuSystems Holdings and Inogen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with InfuSystems Holdings and Inogen

The main advantage of trading using opposite InfuSystems Holdings and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings 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 InfuSystems Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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