Correlation Between Intema Solutions and Gan

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

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

Diversification Opportunities for Intema Solutions and Gan

0.0

Correlation Coefficient

Intema Solutions  Gan

Pay attention - limited upside

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

Pair Corralation between Intema Solutions and Gan

If you would invest  0.22  in Intema Solutions on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Intema Solutions 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

Intema Solutions  vs.  Gan

Intema Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intema Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Intema Solutions is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Gan

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Intema Solutions and Gan

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

The idea behind Intema Solutions and Gan 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.