Correlation Between SupplyMe Capital and Integrated Diagnostics

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

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

Diversification Opportunities for SupplyMe Capital and Integrated Diagnostics

-0.4

Correlation Coefficient

SupplyMe Capital  Integrated Diagnostics

Very good diversification

The 3 months correlation between SupplyMe and Integrated is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Integrated Diagnostics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Diagnostics and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with Integrated Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Diagnostics has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Integrated Diagnostics go up and down completely randomly.

Pair Corralation between SupplyMe Capital and Integrated Diagnostics

Assuming the 90 days trading horizon SupplyMe Capital is expected to generate 4.04 times less return on investment than Integrated Diagnostics. In addition to that, SupplyMe Capital is 3.75 times more volatile than Integrated Diagnostics Holdings. It trades about 0.01 of its total potential returns per unit of risk. Integrated Diagnostics Holdings is currently generating about 0.12 per unit of volatility. If you would invest  35.00  in Integrated Diagnostics Holdings on September 24, 2024 and sell it today you would earn a total of  10.00  from holding Integrated Diagnostics Holdings or generate 28.57% return on investment over 90 days.

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

SupplyMe Capital PLC  vs.  Integrated Diagnostics Holding

SupplyMe Capital PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SupplyMe Capital PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, SupplyMe Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Integrated Diagnostics

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Diagnostics Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Integrated Diagnostics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SupplyMe Capital and Integrated Diagnostics

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

The idea behind SupplyMe Capital PLC and Integrated Diagnostics 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.