Correlation Between Mesabi Trust and Intelgenx Technologs

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

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

Diversification Opportunities for Mesabi Trust and Intelgenx Technologs

0.0

Correlation Coefficient

Mesabi Trust  Intelgenx Technologs

Pay attention - limited upside

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

Pair Corralation between Mesabi Trust and Intelgenx Technologs

If you would invest  1,687  in Mesabi Trust on September 29, 2024 and sell it today you would earn a total of  1,173  from holding Mesabi Trust or generate 69.53% return on investment over 90 days.

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

Mesabi Trust  vs.  Intelgenx Technologs

Mesabi Trust

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mesabi Trust are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Mesabi Trust sustained solid returns over the last few months and may actually be approaching a breakup point.

Intelgenx Technologs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelgenx Technologs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intelgenx Technologs is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mesabi Trust and Intelgenx Technologs

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

The idea behind Mesabi Trust and Intelgenx Technologs 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.