Correlation Between Intelgenx Technologs and Pharmather Holdings

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

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

Diversification Opportunities for Intelgenx Technologs and Pharmather Holdings

0.0

Correlation Coefficient

Intelgenx Technologs  Pharmather Holdings

Pay attention - limited upside

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

Pair Corralation between Intelgenx Technologs and Pharmather Holdings

If you would invest  17.00  in Intelgenx Technologs on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Intelgenx Technologs or generate 0.0% return on investment over 90 days.

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

Intelgenx Technologs  vs.  Pharmather Holdings

Intelgenx Technologs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelgenx Technologs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intelgenx Technologs is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pharmather Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pharmather Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Intelgenx Technologs and Pharmather Holdings

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

The idea behind Intelgenx Technologs and Pharmather Holdings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.