Correlation Between FarmStory and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both FarmStory and Intellian Technologies 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 FarmStory and Intellian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FarmStory Co and Intellian Technologies, you can compare the effects of market volatilities on FarmStory and Intellian Technologies 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 FarmStory with a short position of Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FarmStory and Intellian Technologies.
Diversification Opportunities for FarmStory and Intellian Technologies
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FarmStory and Intellian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FarmStory Co and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies and FarmStory 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 FarmStory Co are associated (or correlated) with Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of FarmStory i.e., FarmStory and Intellian Technologies go up and down completely randomly.
Pair Corralation between FarmStory and Intellian Technologies
Assuming the 90 days trading horizon FarmStory Co is expected to generate 0.54 times more return on investment than Intellian Technologies. However, FarmStory Co is 1.86 times less risky than Intellian Technologies. It trades about -0.08 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.08 per unit of risk. If you would invest 168,427 in FarmStory Co on September 4, 2024 and sell it today you would lose (55,227) from holding FarmStory Co or give up 32.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FarmStory Co vs. Intellian Technologies
Performance |
| Timeline |
| FarmStory |
| Intellian Technologies |
FarmStory and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FarmStory and Intellian Technologies
The main advantage of trading using opposite FarmStory and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FarmStory position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| FarmStory vs. LG Display | FarmStory vs. Hyundai Motor | FarmStory vs. Hyundai Motor Co | FarmStory vs. Hyundai Motor Co |
| Intellian Technologies vs. Korea Alcohol Industrial | Intellian Technologies vs. TJ media Co | Intellian Technologies vs. AurosTechnology | Intellian Technologies vs. ChipsMedia |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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