Correlation Between Full Truck and Intellinetics

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

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

Diversification Opportunities for Full Truck and Intellinetics

-0.83

Correlation Coefficient

Full Truck  Intellinetics

Pay attention - limited upside

The 3 months correlation between Full and Intellinetics is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and Intellinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellinetics and Full Truck 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 Full Truck Alliance 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 Full Truck i.e., Full Truck and Intellinetics go up and down completely randomly.

Pair Corralation between Full Truck and Intellinetics

Considering the 90-day investment horizon Full Truck Alliance is expected to generate 0.96 times more return on investment than Intellinetics. However, Full Truck Alliance is 1.04 times less risky than Intellinetics. It trades about 0.11 of its potential returns per unit of risk. Intellinetics is currently generating about -0.05 per unit of risk. If you would invest  1,082  in Full Truck Alliance on December 30, 2024 and sell it today you would earn a total of  208.00  from holding Full Truck Alliance or generate 19.22% return on investment over 90 days.

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

Full Truck Alliance  vs.  Intellinetics

Full Truck Alliance

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Full Truck Alliance are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Full Truck displayed solid returns over the last few months and may actually be approaching a breakup point.

Intellinetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intellinetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Full Truck and Intellinetics

The main advantage of trading using opposite Full Truck and Intellinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck 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 Full Truck Alliance 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 CEOs Directory module to screen CEOs from public companies around the world.