Correlation Between Infant Bacterial and I Tech

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

By analyzing existing cross correlation between Infant Bacterial Therapeutics and I Tech, you can compare the effects of market volatilities on Infant Bacterial and I Tech 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 Infant Bacterial with a short position of I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infant Bacterial and I Tech.

Diversification Opportunities for Infant Bacterial and I Tech

-0.47

Correlation Coefficient

Infant Bacterial  I Tech

Very good diversification

The 3 months correlation between Infant and ITECH is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Infant Bacterial Therapeutics and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech and Infant Bacterial 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 Infant Bacterial Therapeutics are associated (or correlated) with I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Infant Bacterial i.e., Infant Bacterial and I Tech go up and down completely randomly.

Pair Corralation between Infant Bacterial and I Tech

Assuming the 90 days trading horizon Infant Bacterial Therapeutics is expected to under-perform the I Tech. In addition to that, Infant Bacterial is 1.43 times more volatile than I Tech. It trades about -0.04 of its total potential returns per unit of risk. I Tech is currently generating about 0.2 per unit of volatility. If you would invest  8,929  in I Tech on May 2, 2025 and sell it today you would earn a total of  2,521  from holding I Tech or generate 28.23% return on investment over 90 days.

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

Infant Bacterial Therapeutics  vs.  I Tech

Infant Bacterial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infant Bacterial Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

I Tech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in I Tech are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, I Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infant Bacterial and I Tech

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

The idea behind Infant Bacterial Therapeutics and I Tech 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 Commodity Directory module to find actively traded commodities issued by global exchanges.