Correlation Between ISpecimen and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both ISpecimen and Intelligent Bio 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 ISpecimen and Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSpecimen and Intelligent Bio Solutions, you can compare the effects of market volatilities on ISpecimen and Intelligent Bio 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 ISpecimen with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISpecimen and Intelligent Bio.
Diversification Opportunities for ISpecimen and Intelligent Bio
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ISpecimen and Intelligent is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and ISpecimen 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 iSpecimen are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of ISpecimen i.e., ISpecimen and Intelligent Bio go up and down completely randomly.
Pair Corralation between ISpecimen and Intelligent Bio
Given the investment horizon of 90 days iSpecimen is expected to under-perform the Intelligent Bio. But the stock apears to be less risky and, when comparing its historical volatility, iSpecimen is 1.59 times less risky than Intelligent Bio. The stock trades about -0.02 of its potential returns per unit of risk. The Intelligent Bio Solutions is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,780 in Intelligent Bio Solutions on August 31, 2024 and sell it today you would lose (3,620) from holding Intelligent Bio Solutions or give up 95.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSpecimen vs. Intelligent Bio Solutions
Performance |
| Timeline |
| iSpecimen |
| Intelligent Bio Solutions |
ISpecimen and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISpecimen and Intelligent Bio
The main advantage of trading using opposite ISpecimen and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISpecimen position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte Corp |
| Intelligent Bio vs. Air Transport Services | Intelligent Bio vs. Xponential Fitness | Intelligent Bio vs. Volaris | Intelligent Bio vs. Allegiant Travel |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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