Correlation Between Intellinetics and Intouch Insight

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

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

Diversification Opportunities for Intellinetics and Intouch Insight

0.21

Correlation Coefficient

Intellinetics  Intouch Insight

Modest diversification

The 3 months correlation between Intellinetics and Intouch is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Intellinetics and Intouch Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Insight and Intellinetics 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 Intellinetics are associated (or correlated) with Intouch Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Insight has no effect on the direction of Intellinetics i.e., Intellinetics and Intouch Insight go up and down completely randomly.

Pair Corralation between Intellinetics and Intouch Insight

Given the investment horizon of 90 days Intellinetics is expected to generate 1.33 times more return on investment than Intouch Insight. However, Intellinetics is 1.33 times more volatile than Intouch Insight. It trades about -0.02 of its potential returns per unit of risk. Intouch Insight is currently generating about -0.06 per unit of risk. If you would invest  1,540  in Intellinetics on April 29, 2025 and sell it today you would lose (182.00) from holding Intellinetics or give up 11.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Intellinetics  vs.  Intouch Insight

Intellinetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intellinetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Intellinetics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Intouch Insight

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Insight has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Intellinetics and Intouch Insight

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

The idea behind Intellinetics and Intouch Insight 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.