Correlation Between Intermediate Capital and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Dairy Farm 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 Dairy Farm 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 Dairy Farm International, you can compare the effects of market volatilities on Intermediate Capital and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Dairy Farm.
Diversification Opportunities for Intermediate Capital and Dairy Farm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermediate and Dairy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Dairy Farm go up and down completely randomly.
Pair Corralation between Intermediate Capital and Dairy Farm
If you would invest 208,000 in Intermediate Capital Group on October 25, 2024 and sell it today you would earn a total of 17,800 from holding Intermediate Capital Group or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Dairy Farm International
Performance |
| Timeline |
| Intermediate Capital |
| Dairy Farm International |
Intermediate Capital and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Dairy Farm
The main advantage of trading using opposite Intermediate Capital and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| Intermediate Capital vs. Cornish Metals | Intermediate Capital vs. AMG Advanced Metallurgical | Intermediate Capital vs. European Metals Holdings | Intermediate Capital vs. Alien Metals |
| Dairy Farm vs. Livermore Investments Group | Dairy Farm vs. Synchrony Financial | Dairy Farm vs. Ally Financial | Dairy Farm vs. Liechtensteinische Landesbank AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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