Correlation Between Tecogen and Polydex Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Tecogen and Polydex Pharmaceuticals 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 Tecogen and Polydex Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Polydex Pharmaceuticals, you can compare the effects of market volatilities on Tecogen and Polydex Pharmaceuticals 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 Tecogen with a short position of Polydex Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Polydex Pharmaceuticals.
Diversification Opportunities for Tecogen and Polydex Pharmaceuticals
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tecogen and Polydex is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and Polydex Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polydex Pharmaceuticals and Tecogen 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 Tecogen are associated (or correlated) with Polydex Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polydex Pharmaceuticals has no effect on the direction of Tecogen i.e., Tecogen and Polydex Pharmaceuticals go up and down completely randomly.
Pair Corralation between Tecogen and Polydex Pharmaceuticals
Given the investment horizon of 90 days Tecogen is expected to under-perform the Polydex Pharmaceuticals. But the otc stock apears to be less risky and, when comparing its historical volatility, Tecogen is 2.92 times less risky than Polydex Pharmaceuticals. The otc stock trades about 0.0 of its potential returns per unit of risk. The Polydex Pharmaceuticals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Polydex Pharmaceuticals on August 24, 2024 and sell it today you would earn a total of 126.00 from holding Polydex Pharmaceuticals or generate 180.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecogen vs. Polydex Pharmaceuticals
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Polydex Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tecogen and Polydex Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Polydex Pharmaceuticals
The main advantage of trading using opposite Tecogen and Polydex Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, Polydex Pharmaceuticals 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 Polydex Pharmaceuticals will offset losses from the drop in Polydex Pharmaceuticals' long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| Polydex Pharmaceuticals vs. ImmuCell | Polydex Pharmaceuticals vs. Senstar Technologies | Polydex Pharmaceuticals vs. Natural Alternatives International | Polydex Pharmaceuticals vs. Paragon Technologies |
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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