Correlation Between Euro Tech and INLIF LIMITED

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

By analyzing existing cross correlation between Euro Tech Holdings and INLIF LIMITED Ordinary, you can compare the effects of market volatilities on Euro Tech and INLIF LIMITED 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 Euro Tech with a short position of INLIF LIMITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Tech and INLIF LIMITED.

Diversification Opportunities for Euro Tech and INLIF LIMITED

0.65

Correlation Coefficient

Euro Tech  INLIF LIMITED

Poor diversification

The 3 months correlation between Euro and INLIF is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Euro Tech Holdings and INLIF LIMITED Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INLIF LIMITED Ordinary and Euro 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 Euro Tech Holdings are associated (or correlated) with INLIF LIMITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INLIF LIMITED Ordinary has no effect on the direction of Euro Tech i.e., Euro Tech and INLIF LIMITED go up and down completely randomly.

Pair Corralation between Euro Tech and INLIF LIMITED

Given the investment horizon of 90 days Euro Tech Holdings is expected to generate 0.95 times more return on investment than INLIF LIMITED. However, Euro Tech Holdings is 1.05 times less risky than INLIF LIMITED. It trades about -0.09 of its potential returns per unit of risk. INLIF LIMITED Ordinary is currently generating about -0.17 per unit of risk. If you would invest  138.00  in Euro Tech Holdings on September 5, 2025 and sell it today you would lose (28.00) from holding Euro Tech Holdings or give up 20.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Euro Tech Holdings  vs.  INLIF LIMITED Ordinary

Euro Tech Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Euro Tech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

INLIF LIMITED Ordinary

Risk-Adjusted Performance

Weakest

Over the last 90 days INLIF LIMITED Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Euro Tech and INLIF LIMITED

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

The idea behind Euro Tech Holdings and INLIF LIMITED Ordinary 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.