Correlation Between Inolife Technologies and ICOA

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

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

Diversification Opportunities for Inolife Technologies and ICOA

0.0

Correlation Coefficient

Inolife Technologies  ICOA

Pay attention - limited upside

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

Pair Corralation between Inolife Technologies and ICOA

If you would invest  0.01  in ICOA Inc on December 28, 2024 and sell it today you would earn a total of  0.00  from holding ICOA Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Inolife Technologies  vs.  ICOA Inc

Inolife Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inolife Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Inolife Technologies is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

ICOA Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICOA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ICOA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inolife Technologies and ICOA

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

The idea behind Inolife Technologies and ICOA Inc 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.