Correlation Between Intouch Insight and Route1

Can any of the company-specific risk be diversified away by investing in both Intouch Insight and Route1 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 Intouch Insight and Route1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intouch Insight and Route1 Inc, you can compare the effects of market volatilities on Intouch Insight and Route1 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 Intouch Insight with a short position of Route1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Insight and Route1.

Diversification Opportunities for Intouch Insight and Route1

-0.4

Correlation Coefficient

Intouch Insight  Route1

Very good diversification

The 3 months correlation between Intouch and Route1 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Insight and Route1 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Route1 Inc and Intouch Insight 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 Intouch Insight are associated (or correlated) with Route1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Route1 Inc has no effect on the direction of Intouch Insight i.e., Intouch Insight and Route1 go up and down completely randomly.

Pair Corralation between Intouch Insight and Route1

Assuming the 90 days horizon Intouch Insight is expected to under-perform the Route1. But the otc stock apears to be less risky and, when comparing its historical volatility, Intouch Insight is 3.31 times less risky than Route1. The otc stock trades about -0.05 of its potential returns per unit of risk. The Route1 Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  3.14  in Route1 Inc on May 2, 2025 and sell it today you would earn a total of  3.66  from holding Route1 Inc or generate 116.56% return on investment over 90 days.

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

Intouch Insight  vs.  Route1 Inc

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 latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Route1 Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Route1 Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Route1 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intouch Insight and Route1

The main advantage of trading using opposite Intouch Insight and Route1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Insight position performs unexpectedly, Route1 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 Route1 will offset losses from the drop in Route1's long position.

The idea behind Intouch Insight and Route1 Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.