Correlation Between Spectrum Brands and Intelligent Bio

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

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

Diversification Opportunities for Spectrum Brands and Intelligent Bio

-0.78

Correlation Coefficient

Spectrum Brands  Intelligent Bio

Pay attention - limited upside

The 3 months correlation between Spectrum and Intelligent is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings 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 Spectrum Brands 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 Spectrum Brands Holdings 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 Spectrum Brands i.e., Spectrum Brands and Intelligent Bio go up and down completely randomly.

Pair Corralation between Spectrum Brands and Intelligent Bio

Considering the 90-day investment horizon Spectrum Brands Holdings is expected to under-perform the Intelligent Bio. But the stock apears to be less risky and, when comparing its historical volatility, Spectrum Brands Holdings is 3.68 times less risky than Intelligent Bio. The stock trades about -0.18 of its potential returns per unit of risk. The Intelligent Bio Solutions is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  134.00  in Intelligent Bio Solutions on December 21, 2024 and sell it today you would earn a total of  82.00  from holding Intelligent Bio Solutions or generate 61.19% return on investment over 90 days.

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

Spectrum Brands Holdings  vs.  Intelligent Bio Solutions

Spectrum Brands Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spectrum Brands Holdings 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 somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intelligent Bio Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spectrum Brands and Intelligent Bio

The main advantage of trading using opposite Spectrum Brands and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands 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 Spectrum Brands Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.