Correlation Between Daou Technology and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both Daou Technology and INtRON Biotechnology 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 Daou Technology and INtRON Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Technology and iNtRON Biotechnology, you can compare the effects of market volatilities on Daou Technology and INtRON Biotechnology 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 Daou Technology with a short position of INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Technology and INtRON Biotechnology.
Diversification Opportunities for Daou Technology and INtRON Biotechnology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daou and INtRON is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Daou Technology and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology and Daou Technology 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 Daou Technology are associated (or correlated) with INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of Daou Technology i.e., Daou Technology and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between Daou Technology and INtRON Biotechnology
Assuming the 90 days trading horizon Daou Technology is expected to generate 0.45 times more return on investment than INtRON Biotechnology. However, Daou Technology is 2.21 times less risky than INtRON Biotechnology. It trades about 0.01 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 1,798,816 in Daou Technology on September 1, 2024 and sell it today you would earn a total of 28,184 from holding Daou Technology or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Technology vs. iNtRON Biotechnology
Performance |
| Timeline |
| Daou Technology |
| iNtRON Biotechnology |
Daou Technology and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Technology and INtRON Biotechnology
The main advantage of trading using opposite Daou Technology and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Technology position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| Daou Technology vs. Kaonmedia Co | Daou Technology vs. JYP Entertainment Corp | Daou Technology vs. DC Media Co | Daou Technology vs. Raontech |
| INtRON Biotechnology vs. AptaBio Therapeutics | INtRON Biotechnology vs. KT Hitel | INtRON Biotechnology vs. SillaJen | INtRON Biotechnology vs. Cytogen |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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