Correlation Between Identillect Technologies and Birchtech Corp

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

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

Diversification Opportunities for Identillect Technologies and Birchtech Corp

0.0

Correlation Coefficient

Identillect Technologies  Birchtech Corp

Pay attention - limited upside

The 3 months correlation between Identillect and Birchtech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Identillect Technologies Corp and Birchtech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birchtech Corp and Identillect Technologies 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 Identillect Technologies Corp are associated (or correlated) with Birchtech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birchtech Corp has no effect on the direction of Identillect Technologies i.e., Identillect Technologies and Birchtech Corp go up and down completely randomly.

Pair Corralation between Identillect Technologies and Birchtech Corp

If you would invest  64.00  in Birchtech Corp on April 20, 2025 and sell it today you would earn a total of  23.00  from holding Birchtech Corp or generate 35.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Identillect Technologies Corp  vs.  Birchtech Corp

Identillect Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Identillect Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Identillect Technologies is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Birchtech Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Birchtech Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Birchtech Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Identillect Technologies and Birchtech Corp

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

The idea behind Identillect Technologies Corp and Birchtech Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.