Correlation Between SBC Medical and Intelligent Group
Can any of the company-specific risk be diversified away by investing in both SBC Medical and Intelligent Group 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 SBC Medical and Intelligent Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBC Medical Group and Intelligent Group Limited, you can compare the effects of market volatilities on SBC Medical and Intelligent Group 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 SBC Medical with a short position of Intelligent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBC Medical and Intelligent Group.
Diversification Opportunities for SBC Medical and Intelligent Group
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBC and Intelligent is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SBC Medical Group and Intelligent Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Group and SBC Medical 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 SBC Medical Group are associated (or correlated) with Intelligent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Group has no effect on the direction of SBC Medical i.e., SBC Medical and Intelligent Group go up and down completely randomly.
Pair Corralation between SBC Medical and Intelligent Group
Assuming the 90 days horizon SBC Medical is expected to generate 1.01 times less return on investment than Intelligent Group. In addition to that, SBC Medical is 1.65 times more volatile than Intelligent Group Limited. It trades about 0.04 of its total potential returns per unit of risk. Intelligent Group Limited is currently generating about 0.07 per unit of volatility. If you would invest 91.00 in Intelligent Group Limited on September 13, 2024 and sell it today you would earn a total of 5.32 from holding Intelligent Group Limited or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SBC Medical Group vs. Intelligent Group Limited
Performance |
| Timeline |
| SBC Medical Group |
| Intelligent Group |
SBC Medical and Intelligent Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBC Medical and Intelligent Group
The main advantage of trading using opposite SBC Medical and Intelligent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBC Medical position performs unexpectedly, Intelligent Group 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 Group will offset losses from the drop in Intelligent Group's long position.| SBC Medical vs. Acumen Pharmaceuticals | SBC Medical vs. Fomento Economico Mexicano | SBC Medical vs. Lipocine | SBC Medical vs. Fevertree Drinks Plc |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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