Correlation Between FactSet Research and Intercontinental
Can any of the company-specific risk be diversified away by investing in both FactSet Research and Intercontinental 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 FactSet Research and Intercontinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FactSet Research Systems and Intercontinental Exchange, you can compare the effects of market volatilities on FactSet Research and Intercontinental 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 FactSet Research with a short position of Intercontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Intercontinental.
Diversification Opportunities for FactSet Research and Intercontinental
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between FactSet and Intercontinental is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Intercontinental Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercontinental Exchange and FactSet Research 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 FactSet Research Systems are associated (or correlated) with Intercontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercontinental Exchange has no effect on the direction of FactSet Research i.e., FactSet Research and Intercontinental go up and down completely randomly.
Pair Corralation between FactSet Research and Intercontinental
Considering the 90-day investment horizon FactSet Research Systems is expected to generate 1.05 times more return on investment than Intercontinental. However, FactSet Research is 1.05 times more volatile than Intercontinental Exchange. It trades about 0.23 of its potential returns per unit of risk. Intercontinental Exchange is currently generating about 0.0 per unit of risk. If you would invest 41,223 in FactSet Research Systems on August 28, 2024 and sell it today you would earn a total of 7,882 from holding FactSet Research Systems or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FactSet Research Systems vs. Intercontinental Exchange
Performance |
| Timeline |
| FactSet Research Systems |
| Intercontinental Exchange |
FactSet Research and Intercontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and Intercontinental
The main advantage of trading using opposite FactSet Research and Intercontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, Intercontinental 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 Intercontinental will offset losses from the drop in Intercontinental's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Nasdaq Inc |
| Intercontinental vs. Nasdaq Inc | Intercontinental vs. SP Global | Intercontinental vs. Moodys | Intercontinental vs. FactSet Research Systems |
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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