Correlation Between Integrated Biopharma and Trans Lux

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

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

Diversification Opportunities for Integrated Biopharma and Trans Lux

0.0

Correlation Coefficient

Integrated Biopharma  Trans Lux

Pay attention - limited upside

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

Pair Corralation between Integrated Biopharma and Trans Lux

If you would invest (100.00) in Trans Lux Cp on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Trans Lux Cp or generate -100.0% return on investment over 90 days.

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

Integrated Biopharma  vs.  Trans Lux Cp

Integrated Biopharma

Risk-Adjusted Performance

Very Weak

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

Trans Lux Cp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trans Lux Cp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Trans Lux is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Integrated Biopharma and Trans Lux

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

The idea behind Integrated Biopharma and Trans Lux Cp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.