Correlation Between Intelligent Bio and Cencora
Can any of the company-specific risk be diversified away by investing in both Intelligent Bio and Cencora 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 Intelligent Bio and Cencora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelligent Bio Solutions and Cencora, you can compare the effects of market volatilities on Intelligent Bio and Cencora 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 Intelligent Bio with a short position of Cencora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Bio and Cencora.
Diversification Opportunities for Intelligent Bio and Cencora
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intelligent and Cencora is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Bio Solutions and Cencora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencora and Intelligent Bio 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 Intelligent Bio Solutions are associated (or correlated) with Cencora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencora has no effect on the direction of Intelligent Bio i.e., Intelligent Bio and Cencora go up and down completely randomly.
Pair Corralation between Intelligent Bio and Cencora
Given the investment horizon of 90 days Intelligent Bio Solutions is expected to generate 3.74 times more return on investment than Cencora. However, Intelligent Bio is 3.74 times more volatile than Cencora. It trades about 0.28 of its potential returns per unit of risk. Cencora is currently generating about 0.55 per unit of risk. If you would invest 141.00 in Intelligent Bio Solutions on November 3, 2024 and sell it today you would earn a total of 35.00 from holding Intelligent Bio Solutions or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intelligent Bio Solutions vs. Cencora
Performance |
| Timeline |
| Intelligent Bio Solutions |
| Cencora |
Intelligent Bio and Cencora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelligent Bio and Cencora
The main advantage of trading using opposite Intelligent Bio and Cencora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Bio position performs unexpectedly, Cencora 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 Cencora will offset losses from the drop in Cencora's long position.| Intelligent Bio vs. PennantPark Floating Rate | Intelligent Bio vs. Gladstone Investment | Intelligent Bio vs. Northstar Clean Technologies | Intelligent Bio vs. Norfolk Southern |
| Cencora vs. Simpson Manufacturing | Cencora vs. Gannett Co | Cencora vs. Scholastic | Cencora vs. Parker Hannifin |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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