Correlation Between INGEN TECHNOLOGIES and Abbott Laboratories

By analyzing existing cross correlation between INGEN TECHNOLOGIES INC 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.

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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 correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing INGEN TECHNOLOGIES and Abbott Laboratories into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for INGEN TECHNOLOGIES and Abbott Laboratories

0.26
Correlation
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Modest diversification

The 3 months correlation between INGEN and Abbott is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding INGEN TECHNOLOGIES INC 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 INC 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

Given the investment horizon of 30 days, INGEN TECHNOLOGIES INC is expected to generate 9.85 times more return on investment than Abbott Laboratories. However, INGEN TECHNOLOGIES is 9.85 times more volatile than Abbott Laboratories. It trades about 0.19 of its potential returns per unit of risk. Abbott Laboratories is currently generating about 0.08 per unit of risk. If you would invest  0.01  in INGEN TECHNOLOGIES INC on May 1, 2020 and sell it today you would earn a total of  0.01  from holding INGEN TECHNOLOGIES INC or generate 100.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

INGEN TECHNOLOGIES INC  vs.  Abbott Laboratories

 Performance (%) 
      Timeline 
INGEN TECHNOLOGIES INC 
1313

INGEN TECHNOLOGIES Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in INGEN TECHNOLOGIES INC are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively uncertain essential indicators, INGEN TECHNOLOGIES unveiled solid returns over the last few months and may actually be approaching a breakup point.
Abbott Laboratories 
55

Abbott Laboratories Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Abbott Laboratories are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively weak essential indicators, Abbott Laboratories unveiled solid returns over the last few months and may actually be approaching a breakup point.

INGEN TECHNOLOGIES and Abbott Laboratories Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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