Correlation Between Tela Bio and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Tela Bio and Icecure 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 Tela Bio and Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tela Bio and Icecure Medical, you can compare the effects of market volatilities on Tela Bio and Icecure 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 Tela Bio with a short position of Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tela Bio and Icecure Medical.
Diversification Opportunities for Tela Bio and Icecure Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tela and Icecure is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tela Bio and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Tela Bio 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 Tela Bio are associated (or correlated) with Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Tela Bio i.e., Tela Bio and Icecure Medical go up and down completely randomly.
Pair Corralation between Tela Bio and Icecure Medical
Given the investment horizon of 90 days Tela Bio is expected to generate 1.33 times more return on investment than Icecure Medical. However, Tela Bio is 1.33 times more volatile than Icecure Medical. It trades about -0.15 of its potential returns per unit of risk. Icecure Medical is currently generating about -0.22 per unit of risk. If you would invest 178.00 in Tela Bio on August 29, 2025 and sell it today you would lose (66.00) from holding Tela Bio or give up 37.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tela Bio vs. Icecure Medical
Performance |
| Timeline |
| Tela Bio |
| Icecure Medical |
Tela Bio and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tela Bio and Icecure Medical
The main advantage of trading using opposite Tela Bio and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tela Bio position performs unexpectedly, Icecure 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Tela Bio vs. Monster Beverage Corp | Tela Bio vs. Young Cos Brewery | Tela Bio vs. Purple Beverage | Tela Bio vs. Centaurus Metals Limited |
| Icecure Medical vs. Compagnie Plastic Omnium | Icecure Medical vs. Meta Materials | Icecure Medical vs. Solstice Advanced Materials, | Icecure Medical vs. Kossan Rubber Industries |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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