Correlation Between Pharmather Holdings and Intelgenx Technologs

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

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

Diversification Opportunities for Pharmather Holdings and Intelgenx Technologs

0.0

Correlation Coefficient

Pharmather Holdings  Intelgenx Technologs

Pay attention - limited upside

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

Pair Corralation between Pharmather Holdings and Intelgenx Technologs

Assuming the 90 days horizon Pharmather Holdings is expected to generate 1.83 times more return on investment than Intelgenx Technologs. However, Pharmather Holdings is 1.83 times more volatile than Intelgenx Technologs. It trades about 0.02 of its potential returns per unit of risk. Intelgenx Technologs is currently generating about 0.04 per unit of risk. If you would invest  21.00  in Pharmather Holdings on September 17, 2024 and sell it today you would lose (5.00) from holding Pharmather Holdings or give up 23.81% of portfolio value over 90 days.

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

Pharmather Holdings  vs.  Intelgenx Technologs

Pharmather Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pharmather Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Pharmather Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Intelgenx Technologs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelgenx Technologs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intelgenx Technologs is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Pharmather Holdings and Intelgenx Technologs

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

The idea behind Pharmather Holdings and Intelgenx Technologs 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.