Correlation Between Intelligent Bio and ProPhase Labs
Can any of the company-specific risk be diversified away by investing in both Intelligent Bio and ProPhase Labs 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 ProPhase Labs 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 ProPhase Labs, you can compare the effects of market volatilities on Intelligent Bio and ProPhase Labs 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 ProPhase Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Bio and ProPhase Labs.
Diversification Opportunities for Intelligent Bio and ProPhase Labs
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intelligent and ProPhase is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Bio Solutions and ProPhase Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProPhase Labs 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 ProPhase Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProPhase Labs has no effect on the direction of Intelligent Bio i.e., Intelligent Bio and ProPhase Labs go up and down completely randomly.
Pair Corralation between Intelligent Bio and ProPhase Labs
Given the investment horizon of 90 days Intelligent Bio Solutions is expected to generate 0.69 times more return on investment than ProPhase Labs. However, Intelligent Bio Solutions is 1.44 times less risky than ProPhase Labs. It trades about 0.04 of its potential returns per unit of risk. ProPhase Labs is currently generating about -0.38 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intelligent Bio Solutions vs. ProPhase Labs
Performance |
| Timeline |
| Intelligent Bio Solutions |
| ProPhase Labs |
Intelligent Bio and ProPhase Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelligent Bio and ProPhase Labs
The main advantage of trading using opposite Intelligent Bio and ProPhase Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Bio position performs unexpectedly, ProPhase Labs 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 ProPhase Labs will offset losses from the drop in ProPhase Labs' long position.| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
| ProPhase Labs vs. Star Equity Holdings | ProPhase Labs vs. Enzo Biochem | ProPhase Labs vs. Neuronetics | ProPhase Labs vs. Intelligent Bio Solutions |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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