Correlation Between Inolife Technologies and Cal Bay
Can any of the company-specific risk be diversified away by investing in both Inolife Technologies and Cal Bay 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 Inolife Technologies and Cal Bay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inolife Technologies and Cal Bay Intl, you can compare the effects of market volatilities on Inolife Technologies and Cal Bay 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 Inolife Technologies with a short position of Cal Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inolife Technologies and Cal Bay.
Diversification Opportunities for Inolife Technologies and Cal Bay
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Inolife and Cal is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Inolife Technologies and Cal Bay Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Bay Intl and Inolife Technologies 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 Inolife Technologies are associated (or correlated) with Cal Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Bay Intl has no effect on the direction of Inolife Technologies i.e., Inolife Technologies and Cal Bay go up and down completely randomly.
Pair Corralation between Inolife Technologies and Cal Bay
If you would invest 0.01 in Cal Bay Intl on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Cal Bay Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Inolife Technologies vs. Cal Bay Intl
Performance |
| Timeline |
| Inolife Technologies |
| Cal Bay Intl |
Inolife Technologies and Cal Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inolife Technologies and Cal Bay
The main advantage of trading using opposite Inolife Technologies and Cal Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inolife Technologies position performs unexpectedly, Cal Bay 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 Cal Bay will offset losses from the drop in Cal Bay's long position.| Inolife Technologies vs. Halitron | Inolife Technologies vs. Cal Bay Intl | Inolife Technologies vs. XTRA Bitcoin | Inolife Technologies vs. SPENN Technology AS |
| Cal Bay vs. Halitron | Cal Bay vs. First BITCoin Capital | Cal Bay vs. Blackstar Enterprise Group | Cal Bay vs. Armada Mercantile |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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