Correlation Between Intelgenx Technologs and SANUWAVE Health
Can any of the company-specific risk be diversified away by investing in both Intelgenx Technologs and SANUWAVE Health 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 SANUWAVE Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelgenx Technologs and SANUWAVE Health, you can compare the effects of market volatilities on Intelgenx Technologs and SANUWAVE Health 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 SANUWAVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelgenx Technologs and SANUWAVE Health.
Diversification Opportunities for Intelgenx Technologs and SANUWAVE Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intelgenx and SANUWAVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intelgenx Technologs and SANUWAVE Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANUWAVE Health 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 SANUWAVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANUWAVE Health has no effect on the direction of Intelgenx Technologs i.e., Intelgenx Technologs and SANUWAVE Health go up and down completely randomly.
Pair Corralation between Intelgenx Technologs and SANUWAVE Health
Given the investment horizon of 90 days Intelgenx Technologs is expected to generate 180.27 times less return on investment than SANUWAVE Health. But when comparing it to its historical volatility, Intelgenx Technologs is 25.3 times less risky than SANUWAVE Health. It trades about 0.02 of its potential returns per unit of risk. SANUWAVE Health is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,613 in SANUWAVE Health on November 2, 2024 and sell it today you would earn a total of 1,177 from holding SANUWAVE Health or generate 72.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Intelgenx Technologs vs. SANUWAVE Health
Performance |
| Timeline |
| Intelgenx Technologs |
| SANUWAVE Health |
Intelgenx Technologs and SANUWAVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelgenx Technologs and SANUWAVE Health
The main advantage of trading using opposite Intelgenx Technologs and SANUWAVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelgenx Technologs position performs unexpectedly, SANUWAVE Health 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 SANUWAVE Health will offset losses from the drop in SANUWAVE Health'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 |
| SANUWAVE Health vs. Rafarma Pharmaceuticals | SANUWAVE Health vs. GulfSlope Energy | SANUWAVE Health vs. TSS, Common Stock |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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