Correlation Between Intouch Holdings and CORONGLRES CDIS/10/1

Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and CORONGLRES CDIS/10/1 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 Intouch Holdings and CORONGLRES CDIS/10/1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intouch Holdings Public and CORONGLRES CDIS101, you can compare the effects of market volatilities on Intouch Holdings and CORONGLRES CDIS/10/1 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 Intouch Holdings with a short position of CORONGLRES CDIS/10/1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and CORONGLRES CDIS/10/1.

Diversification Opportunities for Intouch Holdings and CORONGLRES CDIS/10/1

-0.61

Correlation Coefficient

Intouch Holdings  CORONGLRES CDIS/10/1

Excellent diversification

The 3 months correlation between Intouch and CORONGLRES is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and CORONGLRES CDIS101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONGLRES CDIS/10/1 and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with CORONGLRES CDIS/10/1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONGLRES CDIS/10/1 has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and CORONGLRES CDIS/10/1 go up and down completely randomly.

Pair Corralation between Intouch Holdings and CORONGLRES CDIS/10/1

Assuming the 90 days trading horizon Intouch Holdings Public is expected to generate 1.19 times more return on investment than CORONGLRES CDIS/10/1. However, Intouch Holdings is 1.19 times more volatile than CORONGLRES CDIS101. It trades about 0.15 of its potential returns per unit of risk. CORONGLRES CDIS101 is currently generating about -0.18 per unit of risk. If you would invest  216.00  in Intouch Holdings Public on September 4, 2024 and sell it today you would earn a total of  50.00  from holding Intouch Holdings Public or generate 23.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

Intouch Holdings Public  vs.  CORONGLRES CDIS101

Intouch Holdings Public

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intouch Holdings Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Intouch Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

CORONGLRES CDIS/10/1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CORONGLRES CDIS101 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Intouch Holdings and CORONGLRES CDIS/10/1

The main advantage of trading using opposite Intouch Holdings and CORONGLRES CDIS/10/1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, CORONGLRES CDIS/10/1 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 CORONGLRES CDIS/10/1 will offset losses from the drop in CORONGLRES CDIS/10/1's long position.

The idea behind Intouch Holdings Public and CORONGLRES CDIS101 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.