Correlation Between Intercontinental and Coinbase Global
Can any of the company-specific risk be diversified away by investing in both Intercontinental and Coinbase Global 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 Intercontinental and Coinbase Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercontinental Exchange and Coinbase Global, you can compare the effects of market volatilities on Intercontinental and Coinbase Global 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 Intercontinental with a short position of Coinbase Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercontinental and Coinbase Global.
Diversification Opportunities for Intercontinental and Coinbase Global
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intercontinental and Coinbase is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Intercontinental Exchange and Coinbase Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Global and Intercontinental 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 Intercontinental Exchange are associated (or correlated) with Coinbase Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Global has no effect on the direction of Intercontinental i.e., Intercontinental and Coinbase Global go up and down completely randomly.
Pair Corralation between Intercontinental and Coinbase Global
Considering the 90-day investment horizon Intercontinental Exchange is expected to under-perform the Coinbase Global. But the stock apears to be less risky and, when comparing its historical volatility, Intercontinental Exchange is 5.13 times less risky than Coinbase Global. The stock trades about -0.05 of its potential returns per unit of risk. The Coinbase Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 20,504 in Coinbase Global on October 25, 2024 and sell it today you would earn a total of 9,097 from holding Coinbase Global or generate 44.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercontinental Exchange vs. Coinbase Global
Performance |
| Timeline |
| Intercontinental Exchange |
| Coinbase Global |
Intercontinental and Coinbase Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercontinental and Coinbase Global
The main advantage of trading using opposite Intercontinental and Coinbase Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercontinental position performs unexpectedly, Coinbase Global 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 Coinbase Global will offset losses from the drop in Coinbase Global's long position.| Intercontinental vs. Nasdaq Inc | Intercontinental vs. SP Global | Intercontinental vs. Moodys | Intercontinental vs. FactSet Research Systems |
| Coinbase Global vs. Moodys | Coinbase Global vs. MSCI Inc | Coinbase Global vs. Intercontinental Exchange | Coinbase Global vs. CME Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |