Correlation Between Intal High and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Intal High and Kellner Merger 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 Intal High and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intal High Relative and Kellner Merger Fund, you can compare the effects of market volatilities on Intal High and Kellner Merger 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 Intal High with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and Kellner Merger.
Diversification Opportunities for Intal High and Kellner Merger
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intal and Kellner is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Intal High 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 Intal High Relative are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Intal High i.e., Intal High and Kellner Merger go up and down completely randomly.
Pair Corralation between Intal High and Kellner Merger
Assuming the 90 days horizon Intal High Relative is expected to generate 2.71 times more return on investment than Kellner Merger. However, Intal High is 2.71 times more volatile than Kellner Merger Fund. It trades about 0.05 of its potential returns per unit of risk. Kellner Merger Fund is currently generating about 0.01 per unit of risk. If you would invest 1,060 in Intal High Relative on September 14, 2024 and sell it today you would earn a total of 238.00 from holding Intal High Relative or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intal High Relative vs. Kellner Merger Fund
Performance |
| Timeline |
| Intal High Relative |
| Kellner Merger |
Intal High and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intal High and Kellner Merger
The main advantage of trading using opposite Intal High and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intal High position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Intal High vs. Sarofim Equity | Intal High vs. Mondrian Global Equity | Intal High vs. Multimedia Portfolio Multimedia | Intal High vs. Gmo Global Equity |
| Kellner Merger vs. California High Yield Municipal | Kellner Merger vs. Intal High Relative | Kellner Merger vs. Morningstar Aggressive Growth | Kellner Merger vs. Calvert High Yield |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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