Correlation Between Via Optronics and Inotiv
Can any of the company-specific risk be diversified away by investing in both Via Optronics and Inotiv 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 Via Optronics and Inotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Optronics Ag and Inotiv Inc, you can compare the effects of market volatilities on Via Optronics and Inotiv 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 Via Optronics with a short position of Inotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Optronics and Inotiv.
Diversification Opportunities for Via Optronics and Inotiv
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Via and Inotiv is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Via Optronics Ag and Inotiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inotiv Inc and Via Optronics 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 Via Optronics Ag are associated (or correlated) with Inotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inotiv Inc has no effect on the direction of Via Optronics i.e., Via Optronics and Inotiv go up and down completely randomly.
Pair Corralation between Via Optronics and Inotiv
If you would invest 182.00 in Inotiv Inc on August 31, 2024 and sell it today you would earn a total of 172.00 from holding Inotiv Inc or generate 94.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Via Optronics Ag vs. Inotiv Inc
Performance |
| Timeline |
| Via Optronics Ag |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inotiv Inc |
Via Optronics and Inotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Optronics and Inotiv
The main advantage of trading using opposite Via Optronics and Inotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Optronics position performs unexpectedly, Inotiv 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 Inotiv will offset losses from the drop in Inotiv's long position.| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |