Correlation Between Large Cap and Intech Managed
Can any of the company-specific risk be diversified away by investing in both Large Cap and Intech Managed 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 Large Cap and Intech Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Cap E and Intech Managed Volatility, you can compare the effects of market volatilities on Large Cap and Intech Managed 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 Large Cap with a short position of Intech Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large Cap and Intech Managed.
Diversification Opportunities for Large Cap and Intech Managed
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Large and Intech is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Large Cap E and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility and Large Cap 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 Large Cap E are associated (or correlated) with Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Large Cap i.e., Large Cap and Intech Managed go up and down completely randomly.
Pair Corralation between Large Cap and Intech Managed
Assuming the 90 days horizon Large Cap is expected to generate 5.4 times less return on investment than Intech Managed. In addition to that, Large Cap is 1.59 times more volatile than Intech Managed Volatility. It trades about 0.01 of its total potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.11 per unit of volatility. If you would invest 1,242 in Intech Managed Volatility on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Intech Managed Volatility or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Large Cap E vs. Intech Managed Volatility
Performance |
| Timeline |
| Large Cap E |
| Intech Managed Volatility |
Large Cap and Intech Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large Cap and Intech Managed
The main advantage of trading using opposite Large Cap and Intech Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large Cap position performs unexpectedly, Intech Managed 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 Intech Managed will offset losses from the drop in Intech Managed's long position.| Large Cap vs. Vanguard Value Index | Large Cap vs. Dodge Cox Stock | Large Cap vs. American Mutual Fund | Large Cap vs. American Funds American |
| Intech Managed vs. Janus Enterprise Fund | Intech Managed vs. Janus Growth And | Intech Managed vs. Janus Triton Fund | Intech Managed vs. Janus Trarian Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |