Correlation Between Intermediate Capital and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Intermediate Capital and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Centaur Media.
Diversification Opportunities for Intermediate Capital and Centaur Media
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intermediate and Centaur is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Centaur Media go up and down completely randomly.
Pair Corralation between Intermediate Capital and Centaur Media
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 1.51 times more return on investment than Centaur Media. However, Intermediate Capital is 1.51 times more volatile than Centaur Media. It trades about 0.06 of its potential returns per unit of risk. Centaur Media is currently generating about -0.12 per unit of risk. If you would invest 206,200 in Intermediate Capital Group on September 1, 2024 and sell it today you would earn a total of 5,600 from holding Intermediate Capital Group or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Centaur Media
Performance |
| Timeline |
| Intermediate Capital |
| Centaur Media |
Intermediate Capital and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Centaur Media
The main advantage of trading using opposite Intermediate Capital and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Intermediate Capital vs. Virgin Wines UK | Intermediate Capital vs. Aeorema Communications Plc | Intermediate Capital vs. Spirent Communications plc | Intermediate Capital vs. BE Semiconductor Industries |
| Centaur Media vs. X FAB Silicon Foundries | Centaur Media vs. Coor Service Management | Centaur Media vs. Hochschild Mining plc | Centaur Media vs. Universal Music 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |