Correlation Between Intouch Holdings and Information

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

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

Diversification Opportunities for Intouch Holdings and Information

0.0

Correlation Coefficient

Intouch Holdings  Information

Pay attention - limited upside

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

Pair Corralation between Intouch Holdings and Information

Assuming the 90 days trading horizon Intouch Holdings Public is expected to under-perform the Information. In addition to that, Intouch Holdings is 1.64 times more volatile than Information and Communication. It trades about -0.12 of its total potential returns per unit of risk. Information and Communication is currently generating about -0.08 per unit of volatility. If you would invest  209.00  in Information and Communication on December 11, 2024 and sell it today you would lose (14.00) from holding Information and Communication or give up 6.7% of portfolio value over 90 days.

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

Intouch Holdings Public  vs.  Information and Communication

Intouch Holdings Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Holdings Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Information and Comm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Information and Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Intouch Holdings and Information

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

The idea behind Intouch Holdings Public and Information and Communication 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.