Correlation Between ScanTech and Inno Holdings

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Can any of the company-specific risk be diversified away by investing in both ScanTech and Inno Holdings 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 ScanTech and Inno Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanTech AI Systems and Inno Holdings Common, you can compare the effects of market volatilities on ScanTech and Inno Holdings 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 ScanTech with a short position of Inno Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanTech and Inno Holdings.

Diversification Opportunities for ScanTech and Inno Holdings

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between ScanTech and Inno is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Inno Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inno Holdings Common and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Inno Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inno Holdings Common has no effect on the direction of ScanTech i.e., ScanTech and Inno Holdings go up and down completely randomly.

Pair Corralation between ScanTech and Inno Holdings

Given the investment horizon of 90 days ScanTech AI Systems is expected to generate 0.98 times more return on investment than Inno Holdings. However, ScanTech AI Systems is 1.02 times less risky than Inno Holdings. It trades about -0.15 of its potential returns per unit of risk. Inno Holdings Common is currently generating about -0.36 per unit of risk. If you would invest  1,060  in ScanTech AI Systems on October 12, 2025 and sell it today you would lose (795.00) from holding ScanTech AI Systems or give up 75.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

ScanTech AI Systems  vs.  Inno Holdings Common

 Performance 
       Timeline  
ScanTech AI Systems 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Inno Holdings Common 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Inno Holdings Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in February 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ScanTech and Inno Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ScanTech and Inno Holdings

The main advantage of trading using opposite ScanTech and Inno Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanTech position performs unexpectedly, Inno Holdings 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 Inno Holdings will offset losses from the drop in Inno Holdings' long position.
The idea behind ScanTech AI Systems and Inno Holdings Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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