Correlation Between Inogen and Xtrackers California
Can any of the company-specific risk be diversified away by investing in both Inogen and Xtrackers California 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 Inogen and Xtrackers California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Xtrackers California Municipal, you can compare the effects of market volatilities on Inogen and Xtrackers California 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 Inogen with a short position of Xtrackers California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Xtrackers California.
Diversification Opportunities for Inogen and Xtrackers California
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inogen and Xtrackers is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Xtrackers California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers California and Inogen 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 Inogen Inc are associated (or correlated) with Xtrackers California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers California has no effect on the direction of Inogen i.e., Inogen and Xtrackers California go up and down completely randomly.
Pair Corralation between Inogen and Xtrackers California
Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Xtrackers California. In addition to that, Inogen is 19.12 times more volatile than Xtrackers California Municipal. It trades about -0.05 of its total potential returns per unit of risk. Xtrackers California Municipal is currently generating about -0.14 per unit of volatility. If you would invest 2,514 in Xtrackers California Municipal on January 26, 2024 and sell it today you would lose (22.00) from holding Xtrackers California Municipal or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Xtrackers California Municipal
Performance |
| Timeline |
| Inogen Inc |
| Xtrackers California |
Inogen and Xtrackers California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Xtrackers California
The main advantage of trading using opposite Inogen and Xtrackers California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Xtrackers California 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 Xtrackers California will offset losses from the drop in Xtrackers California's long position.The idea behind Inogen Inc and Xtrackers California Municipal 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.| Xtrackers California vs. Vanguard Total Stock | Xtrackers California vs. SPDR SP 500 | Xtrackers California vs. iShares Core SP | Xtrackers California vs. Vanguard Total Bond |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |