Correlation Between Eyebright Medical and Inly Media

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

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

Diversification Opportunities for Eyebright Medical and Inly Media

-0.2

Correlation Coefficient

Eyebright Medical  Inly Media

Good diversification

The 3 months correlation between Eyebright and Inly is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Inly Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inly Media and Eyebright Medical 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 Eyebright Medical Technology are associated (or correlated) with Inly Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inly Media has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Inly Media go up and down completely randomly.

Pair Corralation between Eyebright Medical and Inly Media

Assuming the 90 days trading horizon Eyebright Medical Technology is expected to under-perform the Inly Media. But the stock apears to be less risky and, when comparing its historical volatility, Eyebright Medical Technology is 1.27 times less risky than Inly Media. The stock trades about -0.03 of its potential returns per unit of risk. The Inly Media Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  909.00  in Inly Media Co on October 11, 2024 and sell it today you would earn a total of  690.00  from holding Inly Media Co or generate 75.91% return on investment over 90 days.

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

Eyebright Medical Technology  vs.  Inly Media Co

Eyebright Medical

Risk-Adjusted Performance

3 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eyebright Medical Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Eyebright Medical may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Inly Media

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inly Media Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Inly Media sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eyebright Medical and Inly Media

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

The idea behind Eyebright Medical Technology and Inly Media 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.