Correlation Between Intrasense and Sensorion

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

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

Diversification Opportunities for Intrasense and Sensorion

0.0

Correlation Coefficient

Intrasense  Sensorion

Pay attention - limited upside

The 3 months correlation between Intrasense and Sensorion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intrasense and Sensorion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensorion SA and Intrasense 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 Intrasense are associated (or correlated) with Sensorion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensorion SA has no effect on the direction of Intrasense i.e., Intrasense and Sensorion go up and down completely randomly.

Pair Corralation between Intrasense and Sensorion

If you would invest  0.00  in Sensorion SA on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Sensorion SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Intrasense  vs.  Sensorion SA

Intrasense

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intrasense has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Intrasense is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Sensorion SA

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Sensorion SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sensorion is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Intrasense and Sensorion

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

The idea behind Intrasense and Sensorion SA 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.