Correlation Between Egetis Therapeutics and I Tech

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

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

Diversification Opportunities for Egetis Therapeutics and I Tech

-0.81

Correlation Coefficient

Egetis Therapeutics  I Tech

Pay attention - limited upside

The 3 months correlation between Egetis and ITECH is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Egetis Therapeutics AB and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech and Egetis Therapeutics 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 Egetis Therapeutics AB are associated (or correlated) with I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Egetis Therapeutics i.e., Egetis Therapeutics and I Tech go up and down completely randomly.

Pair Corralation between Egetis Therapeutics and I Tech

Assuming the 90 days trading horizon Egetis Therapeutics AB is expected to under-perform the I Tech. But the stock apears to be less risky and, when comparing its historical volatility, Egetis Therapeutics AB is 1.36 times less risky than I Tech. The stock trades about -0.38 of its potential returns per unit of risk. The I Tech is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  5,800  in I Tech on December 30, 2024 and sell it today you would earn a total of  2,950  from holding I Tech or generate 50.86% return on investment over 90 days.

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

Egetis Therapeutics AB  vs.  I Tech

Egetis Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Egetis Therapeutics AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

I Tech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in I Tech are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, I Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Egetis Therapeutics and I Tech

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

The idea behind Egetis Therapeutics AB and I Tech 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.