Correlation Between Editas Medicine and InMode

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

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

Diversification Opportunities for Editas Medicine and InMode

0.78

Correlation Coefficient

Editas Medicine  InMode

Poor diversification

The 3 months correlation between Editas and InMode is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Editas Medicine and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode and Editas Medicine 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 Editas Medicine are associated (or correlated) with InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Editas Medicine i.e., Editas Medicine and InMode go up and down completely randomly.

Pair Corralation between Editas Medicine and InMode

Given the investment horizon of 90 days Editas Medicine is expected to under-perform the InMode. In addition to that, Editas Medicine is 2.92 times more volatile than InMode. It trades about -0.23 of its total potential returns per unit of risk. InMode is currently generating about 0.02 per unit of volatility. If you would invest  1,505  in InMode on October 8, 2025 and sell it today you would earn a total of  14.00  from holding InMode or generate 0.93% return on investment over 90 days.

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

Editas Medicine  vs.  InMode

Editas Medicine

Risk-Adjusted Performance

Weakest

Over the last 90 days Editas Medicine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

InMode

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in InMode are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, InMode is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Editas Medicine and InMode

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

The idea behind Editas Medicine and InMode 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 CEOs Directory module to screen CEOs from public companies around the world.