Correlation Between Cal-Bay Intl and Inolife Technologies
Can any of the company-specific risk be diversified away by investing in both Cal-Bay Intl and Inolife Technologies 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 Cal-Bay Intl and Inolife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Bay Intl and Inolife Technologies, you can compare the effects of market volatilities on Cal-Bay Intl and Inolife Technologies 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 Cal-Bay Intl with a short position of Inolife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Bay Intl and Inolife Technologies.
Diversification Opportunities for Cal-Bay Intl and Inolife Technologies
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Cal-Bay and Inolife is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cal Bay Intl and Inolife Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inolife Technologies and Cal-Bay Intl 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 Cal Bay Intl are associated (or correlated) with Inolife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inolife Technologies has no effect on the direction of Cal-Bay Intl i.e., Cal-Bay Intl and Inolife Technologies go up and down completely randomly.
Pair Corralation between Cal-Bay Intl and Inolife Technologies
If you would invest 0.03 in Inolife Technologies on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Inolife Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Bay Intl vs. Inolife Technologies
Performance |
| Timeline |
| Cal Bay Intl |
| Inolife Technologies |
Cal-Bay Intl and Inolife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal-Bay Intl and Inolife Technologies
The main advantage of trading using opposite Cal-Bay Intl and Inolife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal-Bay Intl position performs unexpectedly, Inolife Technologies 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 Inolife Technologies will offset losses from the drop in Inolife Technologies' long position.| Cal-Bay Intl vs. Boston Properties | Cal-Bay Intl vs. Kilroy Realty Corp | Cal-Bay Intl vs. SL Green Realty | Cal-Bay Intl vs. Vornado Realty Trust |
| Inolife Technologies vs. Halitron | Inolife Technologies vs. Cal Bay Intl | Inolife Technologies vs. LGBTQ Loyalty Holdings | Inolife Technologies vs. XTRA Bitcoin |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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