Correlation Between Innovative Solutions and Intevac

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

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

Diversification Opportunities for Innovative Solutions and Intevac

-0.56

Correlation Coefficient

Innovative Solutions  Intevac

Excellent diversification

The 3 months correlation between Innovative and Intevac is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Solutions and and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and Innovative Solutions 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 Innovative Solutions and are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Innovative Solutions i.e., Innovative Solutions and Intevac go up and down completely randomly.

Pair Corralation between Innovative Solutions and Intevac

Given the investment horizon of 90 days Innovative Solutions and is expected to generate 0.54 times more return on investment than Intevac. However, Innovative Solutions and is 1.84 times less risky than Intevac. It trades about 0.09 of its potential returns per unit of risk. Intevac is currently generating about -0.1 per unit of risk. If you would invest  701.00  in Innovative Solutions and on August 31, 2024 and sell it today you would earn a total of  73.00  from holding Innovative Solutions and or generate 10.41% return on investment over 90 days.

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

Innovative Solutions and  vs.  Intevac

Innovative Solutions and

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innovative Solutions and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Innovative Solutions may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Intevac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intevac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Innovative Solutions and Intevac

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

The idea behind Innovative Solutions and and Intevac 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.