Correlation Between INTUITIVE INVGRP and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both INTUITIVE INVGRP and BANK HANDLOWY 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 INTUITIVE INVGRP and BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE INVGRP LS and BANK HANDLOWY, you can compare the effects of market volatilities on INTUITIVE INVGRP and BANK HANDLOWY 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 INTUITIVE INVGRP with a short position of BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE INVGRP and BANK HANDLOWY.
Diversification Opportunities for INTUITIVE INVGRP and BANK HANDLOWY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTUITIVE and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE INVGRP LS and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY and INTUITIVE INVGRP 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 INTUITIVE INVGRP LS are associated (or correlated) with BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of INTUITIVE INVGRP i.e., INTUITIVE INVGRP and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between INTUITIVE INVGRP and BANK HANDLOWY
Assuming the 90 days horizon INTUITIVE INVGRP LS is expected to generate 19.0 times more return on investment than BANK HANDLOWY. However, INTUITIVE INVGRP is 19.0 times more volatile than BANK HANDLOWY. It trades about 0.07 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.06 per unit of risk. If you would invest 134.00 in INTUITIVE INVGRP LS on August 24, 2024 and sell it today you would lose (121.00) from holding INTUITIVE INVGRP LS or give up 90.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
INTUITIVE INVGRP LS vs. BANK HANDLOWY
Performance |
| Timeline |
| INTUITIVE INVGRP |
| BANK HANDLOWY |
INTUITIVE INVGRP and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE INVGRP and BANK HANDLOWY
The main advantage of trading using opposite INTUITIVE INVGRP and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE INVGRP position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| INTUITIVE INVGRP vs. Dairy Farm International | INTUITIVE INVGRP vs. INDOFOOD AGRI RES | INTUITIVE INVGRP vs. Performance Food Group | INTUITIVE INVGRP vs. GungHo Online Entertainment |
| BANK HANDLOWY vs. EAT WELL INVESTMENT | BANK HANDLOWY vs. REGAL ASIAN INVESTMENTS | BANK HANDLOWY vs. Jacquet Metal Service | BANK HANDLOWY vs. ADRIATIC METALS LS 013355 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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