Correlation Between Newretail and Ingentec

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Can any of the company-specific risk be diversified away by investing in both Newretail and Ingentec 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 Newretail and Ingentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newretail Co and Ingentec, you can compare the effects of market volatilities on Newretail and Ingentec 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 Newretail with a short position of Ingentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newretail and Ingentec.

Diversification Opportunities for Newretail and Ingentec

NewretailIngentecDiversified AwayNewretailIngentecDiversified Away100%
-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Newretail and Ingentec is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Newretail Co and Ingentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingentec and Newretail 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 Newretail Co are associated (or correlated) with Ingentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingentec has no effect on the direction of Newretail i.e., Newretail and Ingentec go up and down completely randomly.

Pair Corralation between Newretail and Ingentec

Assuming the 90 days trading horizon Newretail Co is expected to generate 1.8 times more return on investment than Ingentec. However, Newretail is 1.8 times more volatile than Ingentec. It trades about 0.09 of its potential returns per unit of risk. Ingentec is currently generating about -0.12 per unit of risk. If you would invest  1,990  in Newretail Co on October 31, 2024 and sell it today you would earn a total of  330.00  from holding Newretail Co or generate 16.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Newretail Co  vs.  Ingentec

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-1001020
JavaScript chart by amCharts 3.21.153085 4768
       Timeline  
Newretail 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Newretail Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Newretail showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan192021222324252627
Ingentec 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ingentec has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan170180190200210

Newretail and Ingentec Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.79-8.08-5.37-2.660.02.695.478.2511.0313.81 0.020.040.060.08
JavaScript chart by amCharts 3.21.153085 4768
       Returns  

Pair Trading with Newretail and Ingentec

The main advantage of trading using opposite Newretail and Ingentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newretail position performs unexpectedly, Ingentec 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 Ingentec will offset losses from the drop in Ingentec's long position.
The idea behind Newretail Co and Ingentec 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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