Correlation Between SANUWAVE Health and Intelgenx Technologs
Can any of the company-specific risk be diversified away by investing in both SANUWAVE Health and Intelgenx Technologs 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 SANUWAVE Health and Intelgenx Technologs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANUWAVE Health and Intelgenx Technologs, you can compare the effects of market volatilities on SANUWAVE Health and Intelgenx Technologs 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 SANUWAVE Health with a short position of Intelgenx Technologs. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANUWAVE Health and Intelgenx Technologs.
Diversification Opportunities for SANUWAVE Health and Intelgenx Technologs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SANUWAVE and Intelgenx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SANUWAVE Health and Intelgenx Technologs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelgenx Technologs and SANUWAVE Health 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 SANUWAVE Health are associated (or correlated) with Intelgenx Technologs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelgenx Technologs has no effect on the direction of SANUWAVE Health i.e., SANUWAVE Health and Intelgenx Technologs go up and down completely randomly.
Pair Corralation between SANUWAVE Health and Intelgenx Technologs
Given the investment horizon of 90 days SANUWAVE Health is expected to generate 25.3 times more return on investment than Intelgenx Technologs. However, SANUWAVE Health is 25.3 times more volatile than Intelgenx Technologs. It trades about 0.12 of its potential returns per unit of risk. Intelgenx Technologs is currently generating about 0.02 per unit of risk. If you would invest 1,613 in SANUWAVE Health on November 2, 2024 and sell it today you would earn a total of 1,177 from holding SANUWAVE Health or generate 72.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SANUWAVE Health vs. Intelgenx Technologs
Performance |
| Timeline |
| SANUWAVE Health |
| Intelgenx Technologs |
SANUWAVE Health and Intelgenx Technologs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANUWAVE Health and Intelgenx Technologs
The main advantage of trading using opposite SANUWAVE Health and Intelgenx Technologs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANUWAVE Health position performs unexpectedly, Intelgenx Technologs 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 Intelgenx Technologs will offset losses from the drop in Intelgenx Technologs' long position.| SANUWAVE Health vs. Rafarma Pharmaceuticals | SANUWAVE Health vs. GulfSlope Energy | SANUWAVE Health vs. TSS, Common Stock |
| Intelgenx Technologs vs. Akeso, Inc | Intelgenx Technologs vs. NLS Pharmaceutics AG | Intelgenx Technologs vs. Ascletis Pharma | Intelgenx Technologs vs. Sirona Biochem Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |