Correlation Between INTER CARS and Link Real
Can any of the company-specific risk be diversified away by investing in both INTER CARS and Link Real 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 Link Real 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 Link Real Estate, you can compare the effects of market volatilities on INTER CARS and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Link Real.
Diversification Opportunities for INTER CARS and Link Real
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTER and Link is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of INTER CARS i.e., INTER CARS and Link Real go up and down completely randomly.
Pair Corralation between INTER CARS and Link Real
Assuming the 90 days horizon INTER CARS is expected to generate 5.91 times less return on investment than Link Real. But when comparing it to its historical volatility, INTER CARS SA is 4.29 times less risky than Link Real. It trades about 0.17 of its potential returns per unit of risk. Link Real Estate is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 294.00 in Link Real Estate on September 2, 2024 and sell it today you would earn a total of 125.00 from holding Link Real Estate or generate 42.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. Link Real Estate
Performance |
| Timeline |
| INTER CARS SA |
| Link Real Estate |
INTER CARS and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Link Real
The main advantage of trading using opposite INTER CARS and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.| INTER CARS vs. CosmoSteel Holdings Limited | INTER CARS vs. MagnaChip Semiconductor Corp | INTER CARS vs. Nordic Semiconductor ASA | INTER CARS vs. Tianjin Capital Environmental |
| Link Real vs. Lendlease Group | Link Real vs. Geely Automobile Holdings | Link Real vs. Cars Inc | Link Real vs. INTER CARS SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |