Correlation Between BANK HANDLOWY and INTUITIVE INVGRP
Can any of the company-specific risk be diversified away by investing in both BANK HANDLOWY and INTUITIVE INVGRP 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 BANK HANDLOWY and INTUITIVE INVGRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK HANDLOWY and INTUITIVE INVGRP LS, you can compare the effects of market volatilities on BANK HANDLOWY and INTUITIVE INVGRP 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 BANK HANDLOWY with a short position of INTUITIVE INVGRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK HANDLOWY and INTUITIVE INVGRP.
Diversification Opportunities for BANK HANDLOWY and INTUITIVE INVGRP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and INTUITIVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BANK HANDLOWY and INTUITIVE INVGRP LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE INVGRP and BANK HANDLOWY 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 BANK HANDLOWY are associated (or correlated) with INTUITIVE INVGRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE INVGRP has no effect on the direction of BANK HANDLOWY i.e., BANK HANDLOWY and INTUITIVE INVGRP go up and down completely randomly.
Pair Corralation between BANK HANDLOWY and INTUITIVE INVGRP
Assuming the 90 days trading horizon BANK HANDLOWY is expected to generate 20.79 times less return on investment than INTUITIVE INVGRP. But when comparing it to its historical volatility, BANK HANDLOWY is 18.64 times less risky than INTUITIVE INVGRP. It trades about 0.06 of its potential returns per unit of risk. INTUITIVE INVGRP LS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 53.00 in INTUITIVE INVGRP LS on August 27, 2024 and sell it today you would lose (40.00) from holding INTUITIVE INVGRP LS or give up 75.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
BANK HANDLOWY vs. INTUITIVE INVGRP LS
Performance |
| Timeline |
| BANK HANDLOWY |
| INTUITIVE INVGRP |
BANK HANDLOWY and INTUITIVE INVGRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK HANDLOWY and INTUITIVE INVGRP
The main advantage of trading using opposite BANK HANDLOWY and INTUITIVE INVGRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK HANDLOWY position performs unexpectedly, INTUITIVE INVGRP 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 INTUITIVE INVGRP will offset losses from the drop in INTUITIVE INVGRP's long position.| BANK HANDLOWY vs. FANDIFI TECHNOLOGY P | BANK HANDLOWY vs. Casio Computer CoLtd | BANK HANDLOWY vs. CANON MARKETING JP | BANK HANDLOWY vs. Salesforce |
| INTUITIVE INVGRP vs. REINET INVESTMENTS SCA | INTUITIVE INVGRP vs. SEI INVESTMENTS | INTUITIVE INVGRP vs. Chuangs China Investments | INTUITIVE INVGRP vs. SLR Investment Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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