Correlation Between Intercontinental and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Intercontinental and FactSet Research 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 FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercontinental Exchange and FactSet Research Systems, you can compare the effects of market volatilities on Intercontinental and FactSet Research 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 FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercontinental and FactSet Research.
Diversification Opportunities for Intercontinental and FactSet Research
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intercontinental and FactSet is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Intercontinental Exchange and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems 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 FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Intercontinental i.e., Intercontinental and FactSet Research go up and down completely randomly.
Pair Corralation between Intercontinental and FactSet Research
Considering the 90-day investment horizon Intercontinental Exchange is expected to under-perform the FactSet Research. In addition to that, Intercontinental is 1.39 times more volatile than FactSet Research Systems. It trades about -0.11 of its total potential returns per unit of risk. FactSet Research Systems is currently generating about 0.27 per unit of volatility. If you would invest 45,929 in FactSet Research Systems on August 28, 2024 and sell it today you would earn a total of 3,176 from holding FactSet Research Systems or generate 6.92% 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. FactSet Research Systems
Performance |
| Timeline |
| Intercontinental Exchange |
| FactSet Research Systems |
Intercontinental and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercontinental and FactSet Research
The main advantage of trading using opposite Intercontinental and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercontinental position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.| Intercontinental vs. Nasdaq Inc | Intercontinental vs. SP Global | Intercontinental vs. Moodys | Intercontinental vs. FactSet Research Systems |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Nasdaq Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |