Correlation Between INtRON Biotechnology and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Atinum Investment 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 Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Atinum Investment Co, you can compare the effects of market volatilities on INtRON Biotechnology and Atinum Investment 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 Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Atinum Investment.
Diversification Opportunities for INtRON Biotechnology and Atinum Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INtRON and Atinum is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment 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 Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Atinum Investment go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Atinum Investment
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 1.7 times more return on investment than Atinum Investment. However, INtRON Biotechnology is 1.7 times more volatile than Atinum Investment Co. It trades about 0.05 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.28 per unit of risk. If you would invest 560,000 in iNtRON Biotechnology on November 3, 2024 and sell it today you would earn a total of 9,000 from holding iNtRON Biotechnology or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Atinum Investment Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Atinum Investment |
INtRON Biotechnology and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Atinum Investment
The main advantage of trading using opposite INtRON Biotechnology and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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