Correlation Between INTER CARS and Caseys General
Can any of the company-specific risk be diversified away by investing in both INTER CARS and Caseys General 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 INTER CARS and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and Caseys General Stores, you can compare the effects of market volatilities on INTER CARS and Caseys General 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 INTER CARS with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Caseys General.
Diversification Opportunities for INTER CARS and Caseys General
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INTER and Caseys is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and INTER CARS 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 INTER CARS SA are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of INTER CARS i.e., INTER CARS and Caseys General go up and down completely randomly.
Pair Corralation between INTER CARS and Caseys General
Assuming the 90 days horizon INTER CARS SA is expected to generate 1.6 times more return on investment than Caseys General. However, INTER CARS is 1.6 times more volatile than Caseys General Stores. It trades about 0.2 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.04 per unit of risk. If you would invest 10,840 in INTER CARS SA on October 17, 2024 and sell it today you would earn a total of 1,680 from holding INTER CARS SA or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. Caseys General Stores
Performance |
| Timeline |
| INTER CARS SA |
| Caseys General Stores |
INTER CARS and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Caseys General
The main advantage of trading using opposite INTER CARS and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| INTER CARS vs. Firan Technology Group | INTER CARS vs. AECOM TECHNOLOGY | INTER CARS vs. MOLSON RS BEVERAGE | INTER CARS vs. FANDIFI TECHNOLOGY P |
| Caseys General vs. INTER CARS SA | Caseys General vs. MUTUIONLINE | Caseys General vs. VARIOUS EATERIES LS | Caseys General vs. Sekisui Chemical Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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