Correlation Between ENDRA Life and Intelligent Bio

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

By analyzing existing cross correlation between ENDRA Life Sciences and Intelligent Bio Solutions, you can compare the effects of market volatilities on ENDRA Life and Intelligent Bio 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 ENDRA Life with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENDRA Life and Intelligent Bio.

Diversification Opportunities for ENDRA Life and Intelligent Bio

-0.18

Correlation Coefficient

ENDRA Life  Intelligent Bio

Good diversification

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

Pair Corralation between ENDRA Life and Intelligent Bio

Given the investment horizon of 90 days ENDRA Life Sciences is expected to under-perform the Intelligent Bio. In addition to that, ENDRA Life is 1.84 times more volatile than Intelligent Bio Solutions. It trades about -0.04 of its total potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.08 per unit of volatility. If you would invest  130.00  in Intelligent Bio Solutions on September 4, 2024 and sell it today you would earn a total of  34.00  from holding Intelligent Bio Solutions or generate 26.15% return on investment over 90 days.

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

ENDRA Life Sciences  vs.  Intelligent Bio Solutions

ENDRA Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENDRA Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intelligent Bio Solutions

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ENDRA Life and Intelligent Bio

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

The idea behind ENDRA Life Sciences and Intelligent Bio Solutions 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.