Correlation Between AnterogenCoLtd and Itcen Co
Can any of the company-specific risk be diversified away by investing in both AnterogenCoLtd and Itcen Co 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 AnterogenCoLtd and Itcen Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AnterogenCoLtd and Itcen Co, you can compare the effects of market volatilities on AnterogenCoLtd and Itcen Co 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 AnterogenCoLtd with a short position of Itcen Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of AnterogenCoLtd and Itcen Co.
Diversification Opportunities for AnterogenCoLtd and Itcen Co
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AnterogenCoLtd and Itcen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AnterogenCoLtd and Itcen Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itcen Co and AnterogenCoLtd 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 AnterogenCoLtd are associated (or correlated) with Itcen Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itcen Co has no effect on the direction of AnterogenCoLtd i.e., AnterogenCoLtd and Itcen Co go up and down completely randomly.
Pair Corralation between AnterogenCoLtd and Itcen Co
Assuming the 90 days trading horizon AnterogenCoLtd is expected to generate 1.27 times less return on investment than Itcen Co. But when comparing it to its historical volatility, AnterogenCoLtd is 1.32 times less risky than Itcen Co. It trades about 0.07 of its potential returns per unit of risk. Itcen Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 426,500 in Itcen Co on September 26, 2024 and sell it today you would earn a total of 127,500 from holding Itcen Co or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AnterogenCoLtd vs. Itcen Co
Performance |
| Timeline |
| AnterogenCoLtd |
| Itcen Co |
AnterogenCoLtd and Itcen Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AnterogenCoLtd and Itcen Co
The main advantage of trading using opposite AnterogenCoLtd and Itcen Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AnterogenCoLtd position performs unexpectedly, Itcen Co 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 Itcen Co will offset losses from the drop in Itcen Co's long position.| AnterogenCoLtd vs. Kolon Life Science | AnterogenCoLtd vs. JETEMA Co | AnterogenCoLtd vs. Aminologics CoLtd | AnterogenCoLtd vs. HLB Pharmaceutical Co |
| Itcen Co vs. Hana Materials | Itcen Co vs. Daelim Trading Co | Itcen Co vs. EV Advanced Material | Itcen Co vs. DSC Investment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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