Correlation Between Founder Group and Intelligent Group

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

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

Diversification Opportunities for Founder Group and Intelligent Group

0.46

Correlation Coefficient

Founder Group  Intelligent Group

Very weak diversification

The 3 months correlation between Founder and Intelligent is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Founder Group Limited and Intelligent Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Group and Founder Group 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 Founder Group Limited are associated (or correlated) with Intelligent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Group has no effect on the direction of Founder Group i.e., Founder Group and Intelligent Group go up and down completely randomly.

Pair Corralation between Founder Group and Intelligent Group

Considering the 90-day investment horizon Founder Group Limited is expected to under-perform the Intelligent Group. In addition to that, Founder Group is 1.48 times more volatile than Intelligent Group Limited. It trades about -0.11 of its total potential returns per unit of risk. Intelligent Group Limited is currently generating about -0.04 per unit of volatility. If you would invest  78.00  in Intelligent Group Limited on August 11, 2025 and sell it today you would lose (23.00) from holding Intelligent Group Limited or give up 29.49% of portfolio value over 90 days.

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

Founder Group Limited  vs.  Intelligent Group Limited

Founder Group Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Intelligent Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Intelligent Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in December 2025. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Pair Trading with Founder Group and Intelligent Group

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

The idea behind Founder Group Limited and Intelligent Group Limited 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.

Check out your portfolio center.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.