Correlation Between Intermediate Capital and Blackrock World
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Blackrock World 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 Blackrock World 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 Blackrock World Mining, you can compare the effects of market volatilities on Intermediate Capital and Blackrock World 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 Blackrock World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Blackrock World.
Diversification Opportunities for Intermediate Capital and Blackrock World
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intermediate and Blackrock is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Blackrock World Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock World Mining 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 Blackrock World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock World Mining has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Blackrock World go up and down completely randomly.
Pair Corralation between Intermediate Capital and Blackrock World
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 1.27 times more return on investment than Blackrock World. However, Intermediate Capital is 1.27 times more volatile than Blackrock World Mining. It trades about 0.01 of its potential returns per unit of risk. Blackrock World Mining is currently generating about -0.22 per unit of risk. If you would invest 205,118 in Intermediate Capital Group on September 22, 2024 and sell it today you would lose (118.00) from holding Intermediate Capital Group or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Blackrock World Mining
Performance |
| Timeline |
| Intermediate Capital |
| Blackrock World Mining |
Intermediate Capital and Blackrock World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Blackrock World
The main advantage of trading using opposite Intermediate Capital and Blackrock World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Blackrock World 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 Blackrock World will offset losses from the drop in Blackrock World's long position.| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. CATLIN GROUP | Intermediate Capital vs. Tamburi Investment Partners | Intermediate Capital vs. Magnora ASA |
| Blackrock World vs. Catalyst Media Group | Blackrock World vs. CATLIN GROUP | Blackrock World vs. Tamburi Investment Partners | Blackrock World vs. Magnora ASA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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