Correlation Between Ingentec and Medigen Biotechnology
Can any of the company-specific risk be diversified away by investing in both Ingentec and Medigen Biotechnology 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 Ingentec and Medigen Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingentec and Medigen Biotechnology, you can compare the effects of market volatilities on Ingentec and Medigen Biotechnology 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 Ingentec with a short position of Medigen Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingentec and Medigen Biotechnology.
Diversification Opportunities for Ingentec and Medigen Biotechnology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ingentec and Medigen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ingentec and Medigen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigen Biotechnology and Ingentec 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 Ingentec are associated (or correlated) with Medigen Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigen Biotechnology has no effect on the direction of Ingentec i.e., Ingentec and Medigen Biotechnology go up and down completely randomly.
Pair Corralation between Ingentec and Medigen Biotechnology
Assuming the 90 days trading horizon Ingentec is expected to under-perform the Medigen Biotechnology. In addition to that, Ingentec is 1.55 times more volatile than Medigen Biotechnology. It trades about -0.21 of its total potential returns per unit of risk. Medigen Biotechnology is currently generating about -0.17 per unit of volatility. If you would invest 3,520 in Medigen Biotechnology on September 14, 2024 and sell it today you would lose (200.00) from holding Medigen Biotechnology or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ingentec vs. Medigen Biotechnology
Performance |
| Timeline |
| Ingentec |
| Medigen Biotechnology |
Ingentec and Medigen Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingentec and Medigen Biotechnology
The main advantage of trading using opposite Ingentec and Medigen Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingentec position performs unexpectedly, Medigen Biotechnology 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 Medigen Biotechnology will offset losses from the drop in Medigen Biotechnology's long position.| Ingentec vs. Wei Chuan Foods | Ingentec vs. RiTdisplay Corp | Ingentec vs. Fortune Information Systems | Ingentec vs. Wistron Information Technology |
| Medigen Biotechnology vs. Landis Taipei Hotel | Medigen Biotechnology vs. Microtips Technology | Medigen Biotechnology vs. V Tac Technology Co | Medigen Biotechnology vs. Materials Analysis Technology |
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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