Correlation Between Alphatec Holdings and Intelligent Bio

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

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

Diversification Opportunities for Alphatec Holdings and Intelligent Bio

-0.7

Correlation Coefficient

Alphatec Holdings  Intelligent Bio

Excellent diversification

The 3 months correlation between Alphatec and Intelligent is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Alphatec 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 Alphatec Holdings are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Alphatec Holdings i.e., Alphatec Holdings and Intelligent Bio go up and down completely randomly.

Pair Corralation between Alphatec Holdings and Intelligent Bio

Given the investment horizon of 90 days Alphatec Holdings is expected to under-perform the Intelligent Bio. But the stock apears to be less risky and, when comparing its historical volatility, Alphatec Holdings is 2.53 times less risky than Intelligent Bio. The stock trades about -0.08 of its potential returns per unit of risk. The Intelligent Bio Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  128.00  in Intelligent Bio Solutions on May 3, 2025 and sell it today you would earn a total of  30.00  from holding Intelligent Bio Solutions or generate 23.44% return on investment over 90 days.

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

Alphatec Holdings  vs.  Intelligent Bio Solutions

Alphatec Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alphatec Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Intelligent Bio Solutions

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alphatec Holdings and Intelligent Bio

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

The idea behind Alphatec Holdings and Intelligent Bio Solutions 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.