Correlation Between Boston Beer and Intelligent Bio

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

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

Diversification Opportunities for Boston Beer and Intelligent Bio

-0.77

Correlation Coefficient

Boston Beer  Intelligent Bio

Pay attention - limited upside

The 3 months correlation between Boston and Intelligent is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer 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 Boston Beer 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 Boston Beer 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 Boston Beer i.e., Boston Beer and Intelligent Bio go up and down completely randomly.

Pair Corralation between Boston Beer and Intelligent Bio

Considering the 90-day investment horizon Boston Beer is expected to generate 0.37 times more return on investment than Intelligent Bio. However, Boston Beer is 2.69 times less risky than Intelligent Bio. It trades about 0.21 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.03 per unit of risk. If you would invest  19,834  in Boston Beer on May 9, 2025 and sell it today you would earn a total of  2,304  from holding Boston Beer or generate 11.62% return on investment over 90 days.

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

Boston Beer  vs.  Intelligent Bio Solutions

Boston Beer

Risk-Adjusted Performance

Weakest

Over the last 90 days Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Intelligent Bio Solutions

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boston Beer and Intelligent Bio

The main advantage of trading using opposite Boston Beer and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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 Boston Beer 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.