Correlation Between Intelgenx Technologs and Elite Pharma
Can any of the company-specific risk be diversified away by investing in both Intelgenx Technologs and Elite Pharma 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 Intelgenx Technologs and Elite Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelgenx Technologs and Elite Pharma, you can compare the effects of market volatilities on Intelgenx Technologs and Elite Pharma 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 Intelgenx Technologs with a short position of Elite Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelgenx Technologs and Elite Pharma.
Diversification Opportunities for Intelgenx Technologs and Elite Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intelgenx and Elite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intelgenx Technologs and Elite Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Pharma and Intelgenx Technologs 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 Intelgenx Technologs are associated (or correlated) with Elite Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Pharma has no effect on the direction of Intelgenx Technologs i.e., Intelgenx Technologs and Elite Pharma go up and down completely randomly.
Pair Corralation between Intelgenx Technologs and Elite Pharma
Given the investment horizon of 90 days Intelgenx Technologs is expected to generate 5.49 times less return on investment than Elite Pharma. But when comparing it to its historical volatility, Intelgenx Technologs is 2.08 times less risky than Elite Pharma. It trades about 0.02 of its potential returns per unit of risk. Elite Pharma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Elite Pharma on November 2, 2024 and sell it today you would lose (0.27) from holding Elite Pharma or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.72% |
| Values | Daily Returns |
Intelgenx Technologs vs. Elite Pharma
Performance |
| Timeline |
| Intelgenx Technologs |
| Elite Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intelgenx Technologs and Elite Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelgenx Technologs and Elite Pharma
The main advantage of trading using opposite Intelgenx Technologs and Elite Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelgenx Technologs position performs unexpectedly, Elite Pharma 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 Elite Pharma will offset losses from the drop in Elite Pharma's long position.| Intelgenx Technologs vs. Akeso, Inc | Intelgenx Technologs vs. NLS Pharmaceutics AG | Intelgenx Technologs vs. Ascletis Pharma | Intelgenx Technologs vs. Sirona Biochem Corp |
| Elite Pharma vs. Amarantus Bioscience Holdings | Elite Pharma vs. Intelgenx Technologs | Elite Pharma vs. Cytosorbents Crp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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