Correlation Between Intevac and PAR Technology

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

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

Diversification Opportunities for Intevac and PAR Technology

-0.9

Correlation Coefficient

Intevac  PAR Technology

Pay attention - limited upside

The 3 months correlation between Intevac and PAR is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology and Intevac 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 Intevac are associated (or correlated) with PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of Intevac i.e., Intevac and PAR Technology go up and down completely randomly.

Pair Corralation between Intevac and PAR Technology

Given the investment horizon of 90 days Intevac is expected to generate 0.93 times more return on investment than PAR Technology. However, Intevac is 1.07 times less risky than PAR Technology. It trades about 0.1 of its potential returns per unit of risk. PAR Technology is currently generating about -0.07 per unit of risk. If you would invest  342.00  in Intevac on December 27, 2024 and sell it today you would earn a total of  58.00  from holding Intevac or generate 16.96% return on investment over 90 days.

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

Intevac  vs.  PAR Technology

Intevac

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intevac are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intevac exhibited solid returns over the last few months and may actually be approaching a breakup point.

PAR Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days PAR Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Intevac and PAR Technology

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

The idea behind Intevac and PAR Technology 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.

Check out your portfolio center.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.