Correlation Between Intevac and Ebang International

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

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

Diversification Opportunities for Intevac and Ebang International

-0.79

Correlation Coefficient

Intevac  Ebang International

Pay attention - limited upside

The 3 months correlation between Intevac and Ebang is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Ebang International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebang International and Intevac 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 Intevac are associated (or correlated) with Ebang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebang International has no effect on the direction of Intevac i.e., Intevac and Ebang International go up and down completely randomly.

Pair Corralation between Intevac and Ebang International

Given the investment horizon of 90 days Intevac is expected to under-perform the Ebang International. But the stock apears to be less risky and, when comparing its historical volatility, Intevac is 1.68 times less risky than Ebang International. The stock trades about -0.08 of its potential returns per unit of risk. The Ebang International Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  593.00  in Ebang International Holdings on September 3, 2024 and sell it today you would earn a total of  286.00  from holding Ebang International Holdings or generate 48.23% return on investment over 90 days.

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

Intevac  vs.  Ebang International Holdings

Intevac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intevac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ebang International

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ebang International Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ebang International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intevac and Ebang International

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

The idea behind Intevac and Ebang International Holdings 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.