Correlation Between American Realty and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both American Realty and Investcorp Credit 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 American Realty and Investcorp Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Realty Investors and Investcorp Credit Management, you can compare the effects of market volatilities on American Realty and Investcorp Credit 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 American Realty with a short position of Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Realty and Investcorp Credit.
Diversification Opportunities for American Realty and Investcorp Credit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Investcorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Realty Investors and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit and American Realty 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 American Realty Investors are associated (or correlated) with Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of American Realty i.e., American Realty and Investcorp Credit go up and down completely randomly.
Pair Corralation between American Realty and Investcorp Credit
Considering the 90-day investment horizon American Realty Investors is expected to under-perform the Investcorp Credit. In addition to that, American Realty is 1.7 times more volatile than Investcorp Credit Management. It trades about 0.0 of its total potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.02 per unit of volatility. If you would invest 302.00 in Investcorp Credit Management on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Investcorp Credit Management or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Realty Investors vs. Investcorp Credit Management
Performance |
| Timeline |
| American Realty Investors |
| Investcorp Credit |
American Realty and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Realty and Investcorp Credit
The main advantage of trading using opposite American Realty and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Realty position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| American Realty vs. Forestar Group | American Realty vs. Landsea Homes Corp | American Realty vs. Five Point Holdings | American Realty vs. AMREP |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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