Correlation Between INtRON Biotechnology and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and ITM Semiconductor 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 ITM Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and ITM Semiconductor Co, you can compare the effects of market volatilities on INtRON Biotechnology and ITM Semiconductor 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 ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and ITM Semiconductor.
Diversification Opportunities for INtRON Biotechnology and ITM Semiconductor
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INtRON and ITM is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor 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 ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and ITM Semiconductor go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and ITM Semiconductor
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 0.83 times more return on investment than ITM Semiconductor. However, iNtRON Biotechnology is 1.2 times less risky than ITM Semiconductor. It trades about -0.16 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.38 per unit of risk. If you would invest 587,000 in iNtRON Biotechnology on September 1, 2024 and sell it today you would lose (43,000) from holding iNtRON Biotechnology or give up 7.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. ITM Semiconductor Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| ITM Semiconductor |
INtRON Biotechnology and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and ITM Semiconductor
The main advantage of trading using opposite INtRON Biotechnology and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| INtRON Biotechnology vs. AptaBio Therapeutics | INtRON Biotechnology vs. KT Hitel | INtRON Biotechnology vs. SillaJen | INtRON Biotechnology vs. Cytogen |
| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. LX Semicon Co | ITM Semiconductor vs. People Technology | ITM Semiconductor vs. SIMMTECH Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |