Correlation Between SQ Old and Intrusion

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

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

Diversification Opportunities for SQ Old and Intrusion

0.0

Correlation Coefficient

SQ Old  Intrusion

Pay attention - limited upside

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

Pair Corralation between SQ Old and Intrusion

If you would invest  56.00  in Intrusion on November 28, 2024 and sell it today you would earn a total of  62.00  from holding Intrusion or generate 110.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SQ Old  vs.  Intrusion

SQ Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SQ Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, SQ Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Intrusion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SQ Old and Intrusion

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

The idea behind SQ Old and Intrusion 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.