Correlation Between INtRON Biotechnology and BGF Retail
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and BGF 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 BGF 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 BGF Retail Co, you can compare the effects of market volatilities on INtRON Biotechnology and BGF 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and BGF Retail.
Diversification Opportunities for INtRON Biotechnology and BGF Retail
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INtRON and BGF is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and BGF Retail go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and BGF Retail
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 1.51 times more return on investment than BGF Retail. However, INtRON Biotechnology is 1.51 times more volatile than BGF Retail Co. It trades about -0.01 of its potential returns per unit of risk. BGF Retail Co is currently generating about -0.15 per unit of risk. If you would invest 558,389 in iNtRON Biotechnology on October 25, 2024 and sell it today you would lose (4,389) from holding iNtRON Biotechnology or give up 0.79% 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. BGF Retail Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| BGF Retail |
INtRON Biotechnology and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and BGF Retail
The main advantage of trading using opposite INtRON Biotechnology and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, BGF 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| BGF Retail vs. Iljin Display | BGF Retail vs. iNtRON Biotechnology | BGF Retail vs. Lotte Data Communication | BGF Retail vs. Puloon Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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