Correlation Between Inmax Holding and DV Biomed

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

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

Diversification Opportunities for Inmax Holding and DV Biomed

-0.22

Correlation Coefficient

Inmax Holding  DV Biomed

Very good diversification

The 3 months correlation between Inmax and 6539 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Inmax Holding Co and DV Biomed Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DV Biomed and Inmax Holding 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 Inmax Holding Co are associated (or correlated) with DV Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DV Biomed has no effect on the direction of Inmax Holding i.e., Inmax Holding and DV Biomed go up and down completely randomly.

Pair Corralation between Inmax Holding and DV Biomed

Assuming the 90 days trading horizon Inmax Holding Co is expected to under-perform the DV Biomed. In addition to that, Inmax Holding is 1.14 times more volatile than DV Biomed Co. It trades about -0.02 of its total potential returns per unit of risk. DV Biomed Co is currently generating about 0.02 per unit of volatility. If you would invest  6,510  in DV Biomed Co on December 27, 2024 and sell it today you would earn a total of  90.00  from holding DV Biomed Co or generate 1.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.21%
Values	Daily Returns

Inmax Holding Co  vs.  DV Biomed Co

Inmax Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inmax Holding Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Inmax Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

DV Biomed

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DV Biomed Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, DV Biomed is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Inmax Holding and DV Biomed

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

The idea behind Inmax Holding Co and DV Biomed Co 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.