Correlation Between ISpecimen and Tego Cyber

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

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

Diversification Opportunities for ISpecimen and Tego Cyber

0.39

Correlation Coefficient

ISpecimen  Tego Cyber

Weak diversification

The 3 months correlation between ISpecimen and Tego is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Tego Cyber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tego Cyber and ISpecimen 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 iSpecimen are associated (or correlated) with Tego Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tego Cyber has no effect on the direction of ISpecimen i.e., ISpecimen and Tego Cyber go up and down completely randomly.

Pair Corralation between ISpecimen and Tego Cyber

Given the investment horizon of 90 days iSpecimen is expected to under-perform the Tego Cyber. But the stock apears to be less risky and, when comparing its historical volatility, iSpecimen is 2.38 times less risky than Tego Cyber. The stock trades about -0.01 of its potential returns per unit of risk. The Tego Cyber is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3.60  in Tego Cyber on April 24, 2025 and sell it today you would lose (0.09) from holding Tego Cyber or give up 2.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

iSpecimen  vs.  Tego Cyber

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ISpecimen is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Tego Cyber

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tego Cyber are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Tego Cyber sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ISpecimen and Tego Cyber

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

The idea behind iSpecimen and Tego Cyber 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.