Correlation Between ADRIATIC METALS and InterContinental
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and InterContinental 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 ADRIATIC METALS and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and InterContinental Hotels Group, you can compare the effects of market volatilities on ADRIATIC METALS and InterContinental 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 ADRIATIC METALS with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and InterContinental.
Diversification Opportunities for ADRIATIC METALS and InterContinental
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ADRIATIC and InterContinental is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and InterContinental go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and InterContinental
Assuming the 90 days trading horizon ADRIATIC METALS is expected to generate 2.92 times less return on investment than InterContinental. In addition to that, ADRIATIC METALS is 2.96 times more volatile than InterContinental Hotels Group. It trades about 0.02 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.15 per unit of volatility. If you would invest 9,096 in InterContinental Hotels Group on August 28, 2024 and sell it today you would earn a total of 2,604 from holding InterContinental Hotels Group or generate 28.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. InterContinental Hotels Group
Performance |
| Timeline |
| ADRIATIC METALS LS |
| InterContinental Hotels |
ADRIATIC METALS and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and InterContinental
The main advantage of trading using opposite ADRIATIC METALS and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| ADRIATIC METALS vs. MCEWEN MINING INC | ADRIATIC METALS vs. Western Copper and | ADRIATIC METALS vs. GRIFFIN MINING LTD | ADRIATIC METALS vs. CAREER EDUCATION |
| InterContinental vs. GALENA MINING LTD | InterContinental vs. Zijin Mining Group | InterContinental vs. Gladstone Investment | InterContinental vs. PennyMac Mortgage Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |