Correlation Between Seche Environnement and Intelligent Bio

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

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

Diversification Opportunities for Seche Environnement and Intelligent Bio

-0.39

Correlation Coefficient

Seche Environnement  Intelligent Bio

Very good diversification

The 3 months correlation between Seche and Intelligent is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA 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 Seche Environnement 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 Seche Environnement SA 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 Seche Environnement i.e., Seche Environnement and Intelligent Bio go up and down completely randomly.

Pair Corralation between Seche Environnement and Intelligent Bio

Assuming the 90 days horizon Seche Environnement SA is expected to generate 0.51 times more return on investment than Intelligent Bio. However, Seche Environnement SA is 1.95 times less risky than Intelligent Bio. It trades about 0.13 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.04 per unit of risk. If you would invest  2,075  in Seche Environnement SA on May 27, 2025 and sell it today you would earn a total of  455.00  from holding Seche Environnement SA or generate 21.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Seche Environnement SA  vs.  Intelligent Bio Solutions

Seche Environnement

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Seche Environnement SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Seche Environnement showed solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Bio Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental drivers, Intelligent Bio may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Seche Environnement and Intelligent Bio

The main advantage of trading using opposite Seche Environnement and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement 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 Seche Environnement SA 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..