Correlation Between INEO Tech and SRAX
Can any of the company-specific risk be diversified away by investing in both INEO Tech and SRAX 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 INEO Tech and SRAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INEO Tech Corp and SRAX Inc, you can compare the effects of market volatilities on INEO Tech and SRAX 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 INEO Tech with a short position of SRAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of INEO Tech and SRAX.
Diversification Opportunities for INEO Tech and SRAX
Very weak diversification
The 3 months correlation between INEO and SRAX is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding INEO Tech Corp and SRAX Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRAX Inc and INEO Tech 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 INEO Tech Corp are associated (or correlated) with SRAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRAX Inc has no effect on the direction of INEO Tech i.e., INEO Tech and SRAX go up and down completely randomly.
Pair Corralation between INEO Tech and SRAX
Assuming the 90 days horizon INEO Tech Corp is expected to generate 1.17 times more return on investment than SRAX. However, INEO Tech is 1.17 times more volatile than SRAX Inc. It trades about 0.04 of its potential returns per unit of risk. SRAX Inc is currently generating about -0.12 per unit of risk. If you would invest 12.00 in INEO Tech Corp on August 31, 2024 and sell it today you would lose (9.20) from holding INEO Tech Corp or give up 76.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.81% |
| Values | Daily Returns |
INEO Tech Corp vs. SRAX Inc
Performance |
| Timeline |
| INEO Tech Corp |
| SRAX Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
INEO Tech and SRAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INEO Tech and SRAX
The main advantage of trading using opposite INEO Tech and SRAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INEO Tech position performs unexpectedly, SRAX 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 SRAX will offset losses from the drop in SRAX's long position.| INEO Tech vs. Kidoz Inc | INEO Tech vs. Marchex | INEO Tech vs. Snipp Interactive | INEO Tech vs. Mirriad Advertising plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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