Correlation Between Sure Tech and Inrom Construction

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

By analyzing existing cross correlation between Sure Tech Investments LP and Inrom Construction Industries, you can compare the effects of market volatilities on Sure Tech and Inrom Construction 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 Sure Tech with a short position of Inrom Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Inrom Construction.

Diversification Opportunities for Sure Tech and Inrom Construction

-0.58

Correlation Coefficient

Sure Tech  Inrom Construction

Excellent diversification

The 3 months correlation between Sure and Inrom is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Inrom Construction Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inrom Construction and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Inrom Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inrom Construction has no effect on the direction of Sure Tech i.e., Sure Tech and Inrom Construction go up and down completely randomly.

Pair Corralation between Sure Tech and Inrom Construction

Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Inrom Construction. In addition to that, Sure Tech is 1.12 times more volatile than Inrom Construction Industries. It trades about -0.19 of its total potential returns per unit of risk. Inrom Construction Industries is currently generating about 0.18 per unit of volatility. If you would invest  154,409  in Inrom Construction Industries on May 3, 2025 and sell it today you would earn a total of  44,491  from holding Inrom Construction Industries or generate 28.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.08%
Values	Daily Returns

Sure Tech Investments LP  vs.  Inrom Construction Industries

Sure Tech Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sure Tech Investments LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Inrom Construction

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inrom Construction Industries are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Inrom Construction sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sure Tech and Inrom Construction

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

The idea behind Sure Tech Investments LP and Inrom Construction Industries 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.