Correlation Between Intellian Technologies and CU Tech
Can any of the company-specific risk be diversified away by investing in both Intellian Technologies and CU 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 Intellian Technologies and CU Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellian Technologies and CU Tech Corp, you can compare the effects of market volatilities on Intellian Technologies and CU 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 Intellian Technologies with a short position of CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and CU Tech.
Diversification Opportunities for Intellian Technologies and CU Tech
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intellian and 376290 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech Corp 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 CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Intellian Technologies i.e., Intellian Technologies and CU Tech go up and down completely randomly.
Pair Corralation between Intellian Technologies and CU Tech
Assuming the 90 days trading horizon Intellian Technologies is expected to under-perform the CU Tech. In addition to that, Intellian Technologies is 2.8 times more volatile than CU Tech Corp. It trades about -0.17 of its total potential returns per unit of risk. CU Tech Corp is currently generating about -0.13 per unit of volatility. If you would invest 315,500 in CU Tech Corp on August 31, 2024 and sell it today you would lose (14,500) from holding CU Tech Corp or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellian Technologies vs. CU Tech Corp
Performance |
| Timeline |
| Intellian Technologies |
| CU Tech Corp |
Intellian Technologies and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellian Technologies and CU Tech
The main advantage of trading using opposite Intellian Technologies and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies position performs unexpectedly, CU 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 CU Tech will offset losses from the drop in CU Tech's long position.| Intellian Technologies vs. Dongsin Engineering Construction | Intellian Technologies vs. Doosan Fuel Cell | Intellian Technologies vs. Daishin Balance 1 | Intellian Technologies vs. Total Soft Bank |
| CU Tech vs. Atinum Investment Co | CU Tech vs. Coloray International Investment | CU Tech vs. DB Financial Investment | CU Tech vs. NH Investment Securities |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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