Correlation Between Intermediate Capital and Albion Technology
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Albion Technology 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 Intermediate Capital and Albion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and Albion Technology General, you can compare the effects of market volatilities on Intermediate Capital and Albion Technology 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 Intermediate Capital with a short position of Albion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Albion Technology.
Diversification Opportunities for Intermediate Capital and Albion Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intermediate and Albion is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Albion Technology General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albion Technology General and Intermediate Capital 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 Intermediate Capital Group are associated (or correlated) with Albion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albion Technology General has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Albion Technology go up and down completely randomly.
Pair Corralation between Intermediate Capital and Albion Technology
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 1.58 times more return on investment than Albion Technology. However, Intermediate Capital is 1.58 times more volatile than Albion Technology General. It trades about 0.1 of its potential returns per unit of risk. Albion Technology General is currently generating about -0.05 per unit of risk. If you would invest 210,000 in Intermediate Capital Group on September 5, 2024 and sell it today you would earn a total of 10,000 from holding Intermediate Capital Group or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intermediate Capital Group vs. Albion Technology General
Performance |
| Timeline |
| Intermediate Capital |
| Albion Technology General |
Intermediate Capital and Albion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Albion Technology
The main advantage of trading using opposite Intermediate Capital and Albion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Albion Technology 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 Albion Technology will offset losses from the drop in Albion Technology's long position.| Intermediate Capital vs. Greenroc Mining PLC | Intermediate Capital vs. Park Hotels Resorts | Intermediate Capital vs. Melia Hotels | Intermediate Capital vs. Roadside Real Estate |
| Albion Technology vs. Tatton Asset Management | Albion Technology vs. Intermediate Capital Group | Albion Technology vs. Liberty Media Corp | Albion Technology vs. Lendinvest PLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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