Correlation Between Grand Ocean and Intech Biopharm
Can any of the company-specific risk be diversified away by investing in both Grand Ocean 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 Grand Ocean and Intech Biopharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Intech Biopharm, you can compare the effects of market volatilities on Grand Ocean 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 Grand Ocean with a short position of Intech Biopharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Intech Biopharm.
Diversification Opportunities for Grand Ocean and Intech Biopharm
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grand and Intech is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Intech Biopharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Biopharm and Grand Ocean 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 Grand Ocean Retail 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 Grand Ocean i.e., Grand Ocean and Intech Biopharm go up and down completely randomly.
Pair Corralation between Grand Ocean and Intech Biopharm
Assuming the 90 days trading horizon Grand Ocean Retail is expected to generate 1.74 times more return on investment than Intech Biopharm. However, Grand Ocean is 1.74 times more volatile than Intech Biopharm. It trades about 0.04 of its potential returns per unit of risk. Intech Biopharm is currently generating about -0.04 per unit of risk. If you would invest 909.00 in Grand Ocean Retail on October 26, 2024 and sell it today you would earn a total of 106.00 from holding Grand Ocean Retail or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Intech Biopharm
Performance |
| Timeline |
| Grand Ocean Retail |
| Intech Biopharm |
Grand Ocean and Intech Biopharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Intech Biopharm
The main advantage of trading using opposite Grand Ocean and Intech Biopharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean 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.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| Intech Biopharm vs. Genovate Biotechnology Co | Intech Biopharm vs. Hannstar Display Corp | Intech Biopharm vs. Apex Biotechnology Corp | Intech Biopharm vs. Grand Ocean Retail |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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