Correlation Between Neogen and Intelligent Bio

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

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

Diversification Opportunities for Neogen and Intelligent Bio

-0.56

Correlation Coefficient

Neogen  Intelligent Bio

Excellent diversification

The 3 months correlation between Neogen and Intelligent is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Neogen 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 Neogen are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Neogen i.e., Neogen and Intelligent Bio go up and down completely randomly.

Pair Corralation between Neogen and Intelligent Bio

Given the investment horizon of 90 days Neogen is expected to generate 132.12 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, Neogen is 1.26 times less risky than Intelligent Bio. It trades about 0.0 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  135.00  in Intelligent Bio Solutions on May 1, 2025 and sell it today you would earn a total of  24.00  from holding Intelligent Bio Solutions or generate 17.78% return on investment over 90 days.

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

Neogen  vs.  Intelligent Bio Solutions

Neogen

Risk-Adjusted Performance

Insignificant

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

Intelligent Bio Solutions

Risk-Adjusted Performance

Modest

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 weak fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neogen and Intelligent Bio

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

The idea behind Neogen and Intelligent Bio Solutions 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.