Correlation Between INtRON Biotechnology and PH Tech
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and PH Tech 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 PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and PH Tech Co, you can compare the effects of market volatilities on INtRON Biotechnology and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and PH Tech.
Diversification Opportunities for INtRON Biotechnology and PH Tech
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INtRON and 239890 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and PH Tech go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and PH Tech
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the PH Tech. But the stock apears to be less risky and, when comparing its historical volatility, iNtRON Biotechnology is 1.33 times less risky than PH Tech. The stock trades about -0.02 of its potential returns per unit of risk. The PH Tech Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 780,000 in PH Tech Co on October 30, 2024 and sell it today you would earn a total of 20,000 from holding PH Tech Co or generate 2.56% 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. PH Tech Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| PH Tech |
INtRON Biotechnology and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and PH Tech
The main advantage of trading using opposite INtRON Biotechnology and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| PH Tech vs. Hanwha Life Insurance | PH Tech vs. Daishin Information Communications | PH Tech vs. Nice Information Telecommunication | PH Tech vs. ECSTELECOM 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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