Correlation Between Intelligent Bio and United Guardian

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

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

Diversification Opportunities for Intelligent Bio and United Guardian

0.49

Correlation Coefficient

Intelligent Bio  United Guardian

Very weak diversification

The 3 months correlation between Intelligent and United is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Bio Solutions and United Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Guardian and Intelligent Bio 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 Intelligent Bio Solutions are associated (or correlated) with United Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Guardian has no effect on the direction of Intelligent Bio i.e., Intelligent Bio and United Guardian go up and down completely randomly.

Pair Corralation between Intelligent Bio and United Guardian

Given the investment horizon of 90 days Intelligent Bio Solutions is expected to generate 2.21 times more return on investment than United Guardian. However, Intelligent Bio is 2.21 times more volatile than United Guardian. It trades about 0.07 of its potential returns per unit of risk. United Guardian is currently generating about -0.04 per unit of risk. If you would invest  128.00  in Intelligent Bio Solutions on May 20, 2025 and sell it today you would earn a total of  19.00  from holding Intelligent Bio Solutions or generate 14.84% return on investment over 90 days.

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

Intelligent Bio Solutions  vs.  United Guardian

Intelligent Bio Solutions

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 5 (%) 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.

United Guardian

Risk-Adjusted Performance

Weakest

Over the last 90 days United Guardian has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, United Guardian is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Intelligent Bio and United Guardian

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

The idea behind Intelligent Bio Solutions and United Guardian 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.