Correlation Between TaiMed Biologics and Intech Biopharm
Can any of the company-specific risk be diversified away by investing in both TaiMed Biologics and Intech Biopharm 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 TaiMed Biologics and Intech Biopharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TaiMed Biologics and Intech Biopharm, you can compare the effects of market volatilities on TaiMed Biologics and Intech Biopharm 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 TaiMed Biologics with a short position of Intech Biopharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of TaiMed Biologics and Intech Biopharm.
Diversification Opportunities for TaiMed Biologics and Intech Biopharm
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TaiMed and Intech is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding TaiMed Biologics and Intech Biopharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Biopharm and TaiMed Biologics 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 TaiMed Biologics are associated (or correlated) with Intech Biopharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Biopharm has no effect on the direction of TaiMed Biologics i.e., TaiMed Biologics and Intech Biopharm go up and down completely randomly.
Pair Corralation between TaiMed Biologics and Intech Biopharm
Assuming the 90 days trading horizon TaiMed Biologics is expected to generate 1.08 times more return on investment than Intech Biopharm. However, TaiMed Biologics is 1.08 times more volatile than Intech Biopharm. It trades about 0.02 of its potential returns per unit of risk. Intech Biopharm is currently generating about -0.04 per unit of risk. If you would invest 8,260 in TaiMed Biologics on October 25, 2024 and sell it today you would earn a total of 230.00 from holding TaiMed Biologics or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TaiMed Biologics vs. Intech Biopharm
Performance |
| Timeline |
| TaiMed Biologics |
| Intech Biopharm |
TaiMed Biologics and Intech Biopharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TaiMed Biologics and Intech Biopharm
The main advantage of trading using opposite TaiMed Biologics and Intech Biopharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TaiMed Biologics position performs unexpectedly, Intech Biopharm 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 Intech Biopharm will offset losses from the drop in Intech Biopharm's long position.| TaiMed Biologics vs. OBI Pharma | TaiMed Biologics vs. PharmaEngine | TaiMed Biologics vs. Medigen Biotechnology | TaiMed Biologics vs. TTY Biopharm Co |
| Intech Biopharm vs. First Copper Technology | Intech Biopharm vs. Elitegroup Computer Systems | Intech Biopharm vs. Compal Broadband Networks | Intech Biopharm vs. Chernan Metal Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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