Correlation Between Intellian Technologies and SIMMTECH
Can any of the company-specific risk be diversified away by investing in both Intellian Technologies and SIMMTECH 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 Intellian Technologies and SIMMTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellian Technologies and SIMMTECH Co, you can compare the effects of market volatilities on Intellian Technologies and SIMMTECH 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 Intellian Technologies with a short position of SIMMTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and SIMMTECH.
Diversification Opportunities for Intellian Technologies and SIMMTECH
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intellian and SIMMTECH is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and SIMMTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMMTECH and Intellian Technologies 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 Intellian Technologies are associated (or correlated) with SIMMTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMMTECH has no effect on the direction of Intellian Technologies i.e., Intellian Technologies and SIMMTECH go up and down completely randomly.
Pair Corralation between Intellian Technologies and SIMMTECH
Assuming the 90 days trading horizon Intellian Technologies is expected to generate 1.44 times more return on investment than SIMMTECH. However, Intellian Technologies is 1.44 times more volatile than SIMMTECH Co. It trades about -0.18 of its potential returns per unit of risk. SIMMTECH Co is currently generating about -0.43 per unit of risk. If you would invest 4,970,000 in Intellian Technologies on August 29, 2024 and sell it today you would lose (900,000) from holding Intellian Technologies or give up 18.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellian Technologies vs. SIMMTECH Co
Performance |
| Timeline |
| Intellian Technologies |
| SIMMTECH |
Intellian Technologies and SIMMTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellian Technologies and SIMMTECH
The main advantage of trading using opposite Intellian Technologies and SIMMTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies position performs unexpectedly, SIMMTECH 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 SIMMTECH will offset losses from the drop in SIMMTECH's long position.| Intellian Technologies vs. Daou Data Corp | Intellian Technologies vs. Busan Industrial Co | Intellian Technologies vs. Busan Ind | Intellian Technologies vs. Shinhan WTI Futures |
| SIMMTECH vs. Cuckoo Homesys Co | SIMMTECH vs. Hansol Homedeco Co | SIMMTECH vs. Intellian Technologies | SIMMTECH vs. CU Tech Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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