Correlation Between Kerlink SAS and Intrasense

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

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

Diversification Opportunities for Kerlink SAS and Intrasense

0.11

Correlation Coefficient

Kerlink SAS  Intrasense

Average diversification

The 3 months correlation between Kerlink and Intrasense is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kerlink SAS and Intrasense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrasense and Kerlink SAS 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 Kerlink SAS are associated (or correlated) with Intrasense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrasense has no effect on the direction of Kerlink SAS i.e., Kerlink SAS and Intrasense go up and down completely randomly.

Pair Corralation between Kerlink SAS and Intrasense

Assuming the 90 days trading horizon Kerlink SAS is expected to generate 1.4 times more return on investment than Intrasense. However, Kerlink SAS is 1.4 times more volatile than Intrasense. It trades about 0.02 of its potential returns per unit of risk. Intrasense is currently generating about -0.06 per unit of risk. If you would invest  50.00  in Kerlink SAS on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Kerlink SAS or generate 0.0% return on investment over 90 days.

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

Kerlink SAS  vs.  Intrasense

Kerlink SAS

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kerlink SAS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Kerlink SAS is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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.

Pair Trading with Kerlink SAS and Intrasense

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

The idea behind Kerlink SAS and Intrasense 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.