Correlation Between Poxel SA and Intrasense

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Can any of the company-specific risk be diversified away by investing in both Poxel SA and Intrasense 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 Poxel SA and Intrasense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poxel SA and Intrasense, you can compare the effects of market volatilities on Poxel SA and Intrasense 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 Poxel SA with a short position of Intrasense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poxel SA and Intrasense.

Diversification Opportunities for Poxel SA and Intrasense

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Poxel and Intrasense is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Poxel SA and Intrasense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrasense and Poxel SA 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 Poxel SA are associated (or correlated) with Intrasense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrasense has no effect on the direction of Poxel SA i.e., Poxel SA and Intrasense go up and down completely randomly.

Pair Corralation between Poxel SA and Intrasense

Assuming the 90 days trading horizon Poxel SA is expected to under-perform the Intrasense. In addition to that, Poxel SA is 1.24 times more volatile than Intrasense. It trades about -0.01 of its total potential returns per unit of risk. Intrasense is currently generating about 0.0 per unit of volatility. If you would invest  43.00  in Intrasense on October 22, 2024 and sell it today you would lose (18.00) from holding Intrasense or give up 41.86% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Poxel SA  vs.  Intrasense

 Performance 
       Timeline  
Poxel SA 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Poxel SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
Intrasense 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Intrasense has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Poxel SA and Intrasense Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Poxel SA and Intrasense

The main advantage of trading using opposite Poxel SA and Intrasense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poxel SA position performs unexpectedly, Intrasense 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 Intrasense will offset losses from the drop in Intrasense's long position.
The idea behind Poxel SA and Intrasense 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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