Correlation Between RESAAS Services and Intellinetics

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

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

Diversification Opportunities for RESAAS Services and Intellinetics

-0.38

Correlation Coefficient

RESAAS Services  Intellinetics

Very good diversification

The 3 months correlation between RESAAS and Intellinetics is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding RESAAS Services and Intellinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellinetics and RESAAS Services 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 RESAAS Services are associated (or correlated) with Intellinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellinetics has no effect on the direction of RESAAS Services i.e., RESAAS Services and Intellinetics go up and down completely randomly.

Pair Corralation between RESAAS Services and Intellinetics

Assuming the 90 days horizon RESAAS Services is expected to under-perform the Intellinetics. In addition to that, RESAAS Services is 1.8 times more volatile than Intellinetics. It trades about -0.05 of its total potential returns per unit of risk. Intellinetics is currently generating about 0.16 per unit of volatility. If you would invest  1,018  in Intellinetics on August 31, 2024 and sell it today you would earn a total of  517.00  from holding Intellinetics or generate 50.79% return on investment over 90 days.

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

RESAAS Services  vs.  Intellinetics

RESAAS Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RESAAS Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Intellinetics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intellinetics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, Intellinetics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RESAAS Services and Intellinetics

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

The idea behind RESAAS Services and Intellinetics 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.