Correlation Between Intellego Technologies and Neola Medical

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

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

Diversification Opportunities for Intellego Technologies and Neola Medical

-0.37

Correlation Coefficient

Intellego Technologies  Neola Medical

Very good diversification

The 3 months correlation between Intellego and Neola is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Intellego Technologies AB and Neola Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neola Medical AB and Intellego 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 Intellego Technologies AB are associated (or correlated) with Neola Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neola Medical AB has no effect on the direction of Intellego Technologies i.e., Intellego Technologies and Neola Medical go up and down completely randomly.

Pair Corralation between Intellego Technologies and Neola Medical

Assuming the 90 days trading horizon Intellego Technologies AB is expected to generate 2.01 times more return on investment than Neola Medical. However, Intellego Technologies is 2.01 times more volatile than Neola Medical AB. It trades about 0.23 of its potential returns per unit of risk. Neola Medical AB is currently generating about -0.04 per unit of risk. If you would invest  6,970  in Intellego Technologies AB on April 24, 2025 and sell it today you would earn a total of  5,810  from holding Intellego Technologies AB or generate 83.36% return on investment over 90 days.

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

Intellego Technologies AB  vs.  Neola Medical AB

Intellego Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intellego Technologies AB are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Intellego Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Neola Medical AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neola Medical AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Neola Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intellego Technologies and Neola Medical

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

The idea behind Intellego Technologies AB and Neola Medical AB 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.