Correlation Between INEO Tech and SRAX

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

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

Diversification Opportunities for INEO Tech and SRAX

0.0

Correlation Coefficient

INEO Tech  SRAX

Pay attention - limited upside

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

Pair Corralation between INEO Tech and SRAX

If you would invest  2.72  in INEO Tech Corp on October 23, 2024 and sell it today you would earn a total of  3.34  from holding INEO Tech Corp or generate 122.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

INEO Tech Corp  vs.  SRAX Inc

INEO Tech Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INEO Tech Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, INEO Tech reported solid returns over the last few months and may actually be approaching a breakup point.

SRAX Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with INEO Tech and SRAX

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

The idea behind INEO Tech Corp and SRAX 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.