Correlation Between Intech Biopharm and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Intech Biopharm and Fu Burg 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 Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Biopharm and Fu Burg Industrial, you can compare the effects of market volatilities on Intech Biopharm and Fu Burg 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 Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Biopharm and Fu Burg.
Diversification Opportunities for Intech Biopharm and Fu Burg
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intech and 8929 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intech Biopharm and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial 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 Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Intech Biopharm i.e., Intech Biopharm and Fu Burg go up and down completely randomly.
Pair Corralation between Intech Biopharm and Fu Burg
Assuming the 90 days trading horizon Intech Biopharm is expected to generate 38.69 times less return on investment than Fu Burg. In addition to that, Intech Biopharm is 1.05 times more volatile than Fu Burg Industrial. It trades about 0.0 of its total potential returns per unit of risk. Fu Burg Industrial is currently generating about 0.06 per unit of volatility. If you would invest 2,025 in Fu Burg Industrial on September 3, 2024 and sell it today you would earn a total of 1,370 from holding Fu Burg Industrial or generate 67.65% 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. Fu Burg Industrial
Performance |
| Timeline |
| Intech Biopharm |
| Fu Burg Industrial |
Intech Biopharm and Fu Burg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Biopharm and Fu Burg
The main advantage of trading using opposite Intech Biopharm and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Biopharm position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.| Intech Biopharm vs. Compal Electronics | Intech Biopharm vs. Acelon Chemicals Fiber | Intech Biopharm vs. Oceanic Beverages Co | Intech Biopharm vs. Formosa Chemicals Fibre |
| Fu Burg vs. Ruentex Development Co | Fu Burg vs. Symtek Automation Asia | Fu Burg vs. CTCI Corp | Fu Burg vs. Information Technology Total |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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