Correlation Between INtRON Biotechnology and GS Retail
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and GS Retail 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 INtRON Biotechnology and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and GS Retail Co, you can compare the effects of market volatilities on INtRON Biotechnology and GS Retail 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 INtRON Biotechnology with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and GS Retail.
Diversification Opportunities for INtRON Biotechnology and GS Retail
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INtRON and 007070 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and GS Retail go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and GS Retail
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 1.78 times more return on investment than GS Retail. However, INtRON Biotechnology is 1.78 times more volatile than GS Retail Co. It trades about 0.0 of its potential returns per unit of risk. GS Retail Co is currently generating about 0.0 per unit of risk. If you would invest 619,000 in iNtRON Biotechnology on August 25, 2024 and sell it today you would lose (58,000) from holding iNtRON Biotechnology or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. GS Retail Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| GS Retail |
INtRON Biotechnology and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and GS Retail
The main advantage of trading using opposite INtRON Biotechnology and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| GS Retail vs. Nice Information Telecommunication | GS Retail vs. Digital Power Communications | GS Retail vs. iNtRON Biotechnology | GS Retail vs. Daishin Information Communications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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