Correlation Between Inolife Technologies and Mentor Capital

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

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

Diversification Opportunities for Inolife Technologies and Mentor Capital

0.0

Correlation Coefficient

Inolife Technologies  Mentor Capital

Pay attention - limited upside

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

Pair Corralation between Inolife Technologies and Mentor Capital

If you would invest  0.03  in Inolife Technologies on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Inolife Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Inolife Technologies  vs.  Mentor Capital

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.

Mentor Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mentor Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Inolife Technologies and Mentor Capital

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

The idea behind Inolife Technologies and Mentor Capital 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.