Correlation Between Alligator Bioscience and I Tech
Can any of the company-specific risk be diversified away by investing in both Alligator Bioscience and I Tech 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 Alligator Bioscience and I Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alligator Bioscience AB and I Tech, you can compare the effects of market volatilities on Alligator Bioscience and I Tech 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 Alligator Bioscience with a short position of I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligator Bioscience and I Tech.
Diversification Opportunities for Alligator Bioscience and I Tech
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alligator and ITECH is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alligator Bioscience AB and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech and Alligator Bioscience 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 Alligator Bioscience AB are associated (or correlated) with I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Alligator Bioscience i.e., Alligator Bioscience and I Tech go up and down completely randomly.
Pair Corralation between Alligator Bioscience and I Tech
Assuming the 90 days trading horizon Alligator Bioscience AB is expected to under-perform the I Tech. In addition to that, Alligator Bioscience is 1.76 times more volatile than I Tech. It trades about -0.03 of its total potential returns per unit of risk. I Tech is currently generating about 0.03 per unit of volatility. If you would invest 5,139 in I Tech on September 24, 2024 and sell it today you would earn a total of 661.00 from holding I Tech or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alligator Bioscience AB vs. I Tech
Performance |
| Timeline |
| Alligator Bioscience |
| I Tech |
Alligator Bioscience and I Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligator Bioscience and I Tech
The main advantage of trading using opposite Alligator Bioscience and I Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligator Bioscience position performs unexpectedly, I Tech 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 I Tech will offset losses from the drop in I Tech's long position.| Alligator Bioscience vs. BioInvent International AB | Alligator Bioscience vs. Orexo AB | Alligator Bioscience vs. Swedish Orphan Biovitrum | Alligator Bioscience vs. Anoto Group AB |
| I Tech vs. BioInvent International AB | I Tech vs. Alligator Bioscience AB | I Tech vs. Moberg Pharma AB | I Tech vs. Oncopeptides AB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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