Correlation Between Cboe UK and Intermediate Capital
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By analyzing existing cross correlation between Cboe UK Consumer and Intermediate Capital Group, you can compare the effects of market volatilities on Cboe UK and Intermediate Capital 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 Cboe UK with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Intermediate Capital.
Diversification Opportunities for Cboe UK and Intermediate Capital
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cboe and Intermediate is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Cboe UK i.e., Cboe UK and Intermediate Capital go up and down completely randomly.
Pair Corralation between Cboe UK and Intermediate Capital
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.53 times more return on investment than Intermediate Capital. However, Cboe UK Consumer is 1.9 times less risky than Intermediate Capital. It trades about -0.06 of its potential returns per unit of risk. Intermediate Capital Group is currently generating about -0.07 per unit of risk. If you would invest 2,877,125 in Cboe UK Consumer on January 27, 2025 and sell it today you would lose (82,730) from holding Cboe UK Consumer or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Intermediate Capital Group
Performance |
| Timeline |
Cboe UK and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Intermediate Capital Group
Pair trading matchups for Intermediate Capital
Pair Trading with Cboe UK and Intermediate Capital
The main advantage of trading using opposite Cboe UK and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| Cboe UK vs. Charter Communications Cl | Cboe UK vs. Gamma Communications PLC | Cboe UK vs. Tavistock Investments Plc | Cboe UK vs. JPMorgan Japanese Investment |
| Intermediate Capital vs. PureTech Health plc | Intermediate Capital vs. Check Point Software | Intermediate Capital vs. National Beverage Corp | Intermediate Capital vs. Allianz Technology Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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