Correlation Between AZZ Incorporated and Intertek Group
Can any of the company-specific risk be diversified away by investing in both AZZ Incorporated and Intertek Group 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 AZZ Incorporated and Intertek Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AZZ Incorporated and Intertek Group Plc, you can compare the effects of market volatilities on AZZ Incorporated and Intertek Group 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 AZZ Incorporated with a short position of Intertek Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AZZ Incorporated and Intertek Group.
Diversification Opportunities for AZZ Incorporated and Intertek Group
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AZZ and Intertek is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding AZZ Incorporated and Intertek Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertek Group Plc and AZZ Incorporated 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 AZZ Incorporated are associated (or correlated) with Intertek Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertek Group Plc has no effect on the direction of AZZ Incorporated i.e., AZZ Incorporated and Intertek Group go up and down completely randomly.
Pair Corralation between AZZ Incorporated and Intertek Group
Considering the 90-day investment horizon AZZ Incorporated is expected to generate 3.22 times less return on investment than Intertek Group. In addition to that, AZZ Incorporated is 1.26 times more volatile than Intertek Group Plc. It trades about 0.1 of its total potential returns per unit of risk. Intertek Group Plc is currently generating about 0.42 per unit of volatility. If you would invest 5,841 in Intertek Group Plc on November 3, 2024 and sell it today you would earn a total of 692.00 from holding Intertek Group Plc or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
AZZ Incorporated vs. Intertek Group Plc
Performance |
| Timeline |
| AZZ Incorporated |
| Intertek Group Plc |
AZZ Incorporated and Intertek Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AZZ Incorporated and Intertek Group
The main advantage of trading using opposite AZZ Incorporated and Intertek Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AZZ Incorporated position performs unexpectedly, Intertek Group 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 Intertek Group will offset losses from the drop in Intertek Group's long position.| AZZ Incorporated vs. Maximus | AZZ Incorporated vs. ABM Industries Incorporated | AZZ Incorporated vs. CBIZ Inc | AZZ Incorporated vs. Cass Information Systems |
| Intertek Group vs. Dexterra Group | Intertek Group vs. Wildpack Beverage | Intertek Group vs. DATA Communications Management | Intertek Group vs. Mitie Group Plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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