Correlation Between Intech Biopharm and Pan International
Can any of the company-specific risk be diversified away by investing in both Intech Biopharm and Pan International 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 Intech Biopharm and Pan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Biopharm and Pan International Industrial Corp, you can compare the effects of market volatilities on Intech Biopharm and Pan International 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 Intech Biopharm with a short position of Pan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Biopharm and Pan International.
Diversification Opportunities for Intech Biopharm and Pan International
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intech and Pan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Intech Biopharm and Pan International Industrial C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan International and Intech Biopharm 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 Intech Biopharm are associated (or correlated) with Pan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan International has no effect on the direction of Intech Biopharm i.e., Intech Biopharm and Pan International go up and down completely randomly.
Pair Corralation between Intech Biopharm and Pan International
Assuming the 90 days trading horizon Intech Biopharm is expected to under-perform the Pan International. But the stock apears to be less risky and, when comparing its historical volatility, Intech Biopharm is 2.46 times less risky than Pan International. The stock trades about -0.2 of its potential returns per unit of risk. The Pan International Industrial Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,605 in Pan International Industrial Corp on August 27, 2024 and sell it today you would earn a total of 310.00 from holding Pan International Industrial Corp or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intech Biopharm vs. Pan International Industrial C
Performance |
| Timeline |
| Intech Biopharm |
| Pan International |
Intech Biopharm and Pan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Biopharm and Pan International
The main advantage of trading using opposite Intech Biopharm and Pan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Biopharm position performs unexpectedly, Pan International 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 Pan International will offset losses from the drop in Pan International's long position.The idea behind Intech Biopharm and Pan International Industrial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pan International vs. Novatek Microelectronics Corp | Pan International vs. Quanta Computer | Pan International vs. United Microelectronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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