Correlation Between Inbar Group and Terminal X

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

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

Diversification Opportunities for Inbar Group and Terminal X

-0.73

Correlation Coefficient

Inbar Group  Terminal X

Pay attention - limited upside

The 3 months correlation between Inbar and Terminal is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Inbar Group Finance and Terminal X Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terminal X Online and Inbar 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 Inbar Group Finance are associated (or correlated) with Terminal X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terminal X Online has no effect on the direction of Inbar Group i.e., Inbar Group and Terminal X go up and down completely randomly.

Pair Corralation between Inbar Group and Terminal X

Assuming the 90 days trading horizon Inbar Group Finance is expected to under-perform the Terminal X. In addition to that, Inbar Group is 2.38 times more volatile than Terminal X Online. It trades about -0.32 of its total potential returns per unit of risk. Terminal X Online is currently generating about 0.15 per unit of volatility. If you would invest  46,700  in Terminal X Online on April 29, 2025 and sell it today you would earn a total of  5,270  from holding Terminal X Online or generate 11.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	87.76%
Values	Daily Returns

Inbar Group Finance  vs.  Terminal X Online

Inbar Group Finance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inbar Group Finance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Terminal X Online

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Terminal X Online are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Terminal X sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inbar Group and Terminal X

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

The idea behind Inbar Group Finance and Terminal X Online 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.