Correlation Between US Global and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both US Global and Intelligent Bio 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 US Global and Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Intelligent Bio Solutions, you can compare the effects of market volatilities on US Global and Intelligent Bio 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 US Global with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Intelligent Bio.
Diversification Opportunities for US Global and Intelligent Bio
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GROW and Intelligent is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and US Global 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 US Global Investors are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of US Global i.e., US Global and Intelligent Bio go up and down completely randomly.
Pair Corralation between US Global and Intelligent Bio
Given the investment horizon of 90 days US Global is expected to generate 28.88 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, US Global Investors is 4.96 times less risky than Intelligent Bio. It trades about 0.01 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Intelligent Bio Solutions on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Intelligent Bio Solutions or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Intelligent Bio Solutions
Performance |
| Timeline |
| US Global Investors |
| Intelligent Bio Solutions |
US Global and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Intelligent Bio
The main advantage of trading using opposite US Global and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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