Correlation Between Intai Technology and Sysgration

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

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

Diversification Opportunities for Intai Technology and Sysgration

-0.65

Correlation Coefficient

Intai Technology  Sysgration

Excellent diversification

The 3 months correlation between Intai and Sysgration is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Sysgration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysgration and Intai Technology 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 Intai Technology are associated (or correlated) with Sysgration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysgration has no effect on the direction of Intai Technology i.e., Intai Technology and Sysgration go up and down completely randomly.

Pair Corralation between Intai Technology and Sysgration

Assuming the 90 days trading horizon Intai Technology is expected to under-perform the Sysgration. But the stock apears to be less risky and, when comparing its historical volatility, Intai Technology is 3.0 times less risky than Sysgration. The stock trades about -0.14 of its potential returns per unit of risk. The Sysgration is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  4,300  in Sysgration on December 25, 2024 and sell it today you would lose (175.00) from holding Sysgration or give up 4.07% of portfolio value over 90 days.

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

Intai Technology  vs.  Sysgration

Intai Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intai Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Sysgration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sysgration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Sysgration 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 Intai Technology and Sysgration

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

The idea behind Intai Technology and Sysgration 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.