Correlation Between Ingen Technologies and Abbott Laboratories

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Can any of the company-specific risk be diversified away by investing in both Ingen Technologies and Abbott Laboratories 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 Ingen Technologies and Abbott Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingen Technologies and Abbott Laboratories, you can compare the effects of market volatilities on Ingen Technologies and Abbott Laboratories 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 Ingen Technologies with a short position of Abbott Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingen Technologies and Abbott Laboratories.

Diversification Opportunities for Ingen Technologies and Abbott Laboratories

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Ingen Technologies and Abbott Laboratories

If you would invest  0.00  in Ingen Technologies on December 29, 2023 and sell it today you would earn a total of  0.00  from holding Ingen Technologies or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ingen Technologies  vs.  Abbott Laboratories

 Performance 
       Timeline  
Ingen Technologies 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Abbott Laboratories are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, Abbott Laboratories is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Ingen Technologies and Abbott Laboratories Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ingen Technologies and Abbott Laboratories

The main advantage of trading using opposite Ingen Technologies and Abbott Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingen Technologies position performs unexpectedly, Abbott Laboratories 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 Abbott Laboratories will offset losses from the drop in Abbott Laboratories' long position.
The idea behind Ingen Technologies and Abbott Laboratories 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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