Correlation Between G5 Entertainment and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Intermediate Capital 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 G5 Entertainment and Intermediate Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and Intermediate Capital Group, you can compare the effects of market volatilities on G5 Entertainment and Intermediate Capital 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 G5 Entertainment with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Intermediate Capital.
Diversification Opportunities for G5 Entertainment and Intermediate Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0QUS and Intermediate is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital and G5 Entertainment 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 G5 Entertainment AB are associated (or correlated) with Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Intermediate Capital go up and down completely randomly.
Pair Corralation between G5 Entertainment and Intermediate Capital
Assuming the 90 days trading horizon G5 Entertainment AB is expected to under-perform the Intermediate Capital. In addition to that, G5 Entertainment is 1.33 times more volatile than Intermediate Capital Group. It trades about -0.01 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.07 per unit of volatility. If you would invest 131,210 in Intermediate Capital Group on November 5, 2024 and sell it today you would earn a total of 105,790 from holding Intermediate Capital Group or generate 80.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
G5 Entertainment AB vs. Intermediate Capital Group
Performance |
| Timeline |
| G5 Entertainment |
| Intermediate Capital |
G5 Entertainment and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Intermediate Capital
The main advantage of trading using opposite G5 Entertainment and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| G5 Entertainment vs. Ecclesiastical Insurance Office | G5 Entertainment vs. Silvercorp Metals | G5 Entertainment vs. First Majestic Silver | G5 Entertainment vs. iShares Physical Silver |
| Intermediate Capital vs. McEwen Mining | Intermediate Capital vs. Eastinco Mining Exploration | Intermediate Capital vs. Hochschild Mining plc | Intermediate Capital vs. Empire Metals Limited |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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