Correlation Between Qiagen NV and Intelligent Bio

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

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

Diversification Opportunities for Qiagen NV and Intelligent Bio

0.63

Correlation Coefficient

Qiagen NV  Intelligent Bio

Poor diversification

The 3 months correlation between Qiagen and Intelligent is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Qiagen NV 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 Qiagen NV are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Qiagen NV i.e., Qiagen NV and Intelligent Bio go up and down completely randomly.

Pair Corralation between Qiagen NV and Intelligent Bio

Given the investment horizon of 90 days Qiagen NV is expected to generate 1.26 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, Qiagen NV is 4.86 times less risky than Intelligent Bio. It trades about 0.12 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  147.00  in Intelligent Bio Solutions on September 17, 2024 and sell it today you would earn a total of  1.00  from holding Intelligent Bio Solutions or generate 0.68% return on investment over 90 days.

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

Qiagen NV  vs.  Intelligent Bio Solutions

Qiagen NV

Risk-Adjusted Performance

0 of 100

Very Weak

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

Intelligent Bio Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Bio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Qiagen NV and Intelligent Bio

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

The idea behind Qiagen NV and Intelligent Bio Solutions 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.