Correlation Between Coor Service and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Intermediate Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Intermediate Capital Group, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Intermediate Capital.
Diversification Opportunities for Coor Service and Intermediate Capital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coor and Intermediate is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital and Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Intermediate Capital go up and down completely randomly.
Pair Corralation between Coor Service and Intermediate Capital
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the Intermediate Capital. In addition to that, Coor Service is 1.15 times more volatile than Intermediate Capital Group. It trades about 0.0 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.11 per unit of volatility. If you would invest 125,017 in Intermediate Capital Group on August 25, 2024 and sell it today you would earn a total of 84,383 from holding Intermediate Capital Group or generate 67.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. Intermediate Capital Group
Performance |
| Timeline |
| Coor Service Management |
| Intermediate Capital |
Coor Service and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Intermediate Capital
The main advantage of trading using opposite Coor Service and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. X FAB Silicon Foundries | Coor Service vs. Invesco Physical Silver | Coor Service vs. Virgin Wines UK | Coor Service vs. iShares Physical Silver |
| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. Oncimmune Holdings plc | Intermediate Capital vs. Invesco Health Care | Intermediate Capital vs. Coor Service Management |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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