Correlation Between Inmax Holding and Foresee Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Inmax Holding and Foresee Pharmaceuticals 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 Inmax Holding and Foresee Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inmax Holding Co and Foresee Pharmaceuticals Co, you can compare the effects of market volatilities on Inmax Holding and Foresee Pharmaceuticals 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 Inmax Holding with a short position of Foresee Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inmax Holding and Foresee Pharmaceuticals.
Diversification Opportunities for Inmax Holding and Foresee Pharmaceuticals
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inmax and Foresee is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Inmax Holding Co and Foresee Pharmaceuticals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresee Pharmaceuticals and Inmax Holding 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 Inmax Holding Co are associated (or correlated) with Foresee Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresee Pharmaceuticals has no effect on the direction of Inmax Holding i.e., Inmax Holding and Foresee Pharmaceuticals go up and down completely randomly.
Pair Corralation between Inmax Holding and Foresee Pharmaceuticals
Assuming the 90 days trading horizon Inmax Holding Co is expected to generate 2.82 times more return on investment than Foresee Pharmaceuticals. However, Inmax Holding is 2.82 times more volatile than Foresee Pharmaceuticals Co. It trades about 0.0 of its potential returns per unit of risk. Foresee Pharmaceuticals Co is currently generating about -0.08 per unit of risk. If you would invest 5,500 in Inmax Holding Co on September 13, 2024 and sell it today you would lose (130.00) from holding Inmax Holding Co or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inmax Holding Co vs. Foresee Pharmaceuticals Co
Performance |
| Timeline |
| Inmax Holding |
| Foresee Pharmaceuticals |
Inmax Holding and Foresee Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inmax Holding and Foresee Pharmaceuticals
The main advantage of trading using opposite Inmax Holding and Foresee Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inmax Holding position performs unexpectedly, Foresee Pharmaceuticals 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 Foresee Pharmaceuticals will offset losses from the drop in Foresee Pharmaceuticals' long position.| Inmax Holding vs. Hiwin Mikrosystem Corp | Inmax Holding vs. Ruentex Development Co | Inmax Holding vs. Symtek Automation Asia | Inmax Holding vs. WiseChip Semiconductor |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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