Correlation Between Intai Technology and Green World

Can any of the company-specific risk be diversified away by investing in both Intai Technology and Green World 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 Intai Technology and Green World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intai Technology and Green World Fintech, you can compare the effects of market volatilities on Intai Technology and Green World 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 Intai Technology with a short position of Green World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Green World.

Diversification Opportunities for Intai Technology and Green World

-0.18

Correlation Coefficient

Intai Technology  Green World

Good diversification

The 3 months correlation between Intai and Green is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Green World Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green World Fintech and Intai Technology 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 Intai Technology are associated (or correlated) with Green World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green World Fintech has no effect on the direction of Intai Technology i.e., Intai Technology and Green World go up and down completely randomly.

Pair Corralation between Intai Technology and Green World

Assuming the 90 days trading horizon Intai Technology is expected to under-perform the Green World. But the stock apears to be less risky and, when comparing its historical volatility, Intai Technology is 6.09 times less risky than Green World. The stock trades about -0.07 of its potential returns per unit of risk. The Green World Fintech is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,910  in Green World Fintech on September 2, 2024 and sell it today you would earn a total of  1,950  from holding Green World Fintech or generate 39.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intai Technology  vs.  Green World Fintech

Intai Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intai Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Intai Technology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Green World Fintech

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Green World Fintech are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Green World showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intai Technology and Green World

The main advantage of trading using opposite Intai Technology and Green World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, Green World 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 Green World will offset losses from the drop in Green World's long position.

The idea behind Intai Technology and Green World Fintech 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.