Correlation Between Intrasense and VOGO SA

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

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

Diversification Opportunities for Intrasense and VOGO SA

0.07

Correlation Coefficient

Intrasense  VOGO SA

Significant diversification

The 3 months correlation between Intrasense and VOGO is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Intrasense and VOGO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOGO SA and Intrasense 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 Intrasense are associated (or correlated) with VOGO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOGO SA has no effect on the direction of Intrasense i.e., Intrasense and VOGO SA go up and down completely randomly.

Pair Corralation between Intrasense and VOGO SA

Assuming the 90 days trading horizon Intrasense is expected to under-perform the VOGO SA. In addition to that, Intrasense is 1.82 times more volatile than VOGO SA. It trades about -0.06 of its total potential returns per unit of risk. VOGO SA is currently generating about -0.06 per unit of volatility. If you would invest  332.00  in VOGO SA on September 27, 2024 and sell it today you would lose (26.00) from holding VOGO SA or give up 7.83% of portfolio value over 90 days.

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

Intrasense  vs.  VOGO SA

Intrasense

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intrasense has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

VOGO SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VOGO SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Intrasense and VOGO SA

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

The idea behind Intrasense and VOGO SA 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.