Correlation Between Intermediate Capital and Ecofin Global
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Ecofin Global 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 Ecofin Global 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 Ecofin Global Utilities, you can compare the effects of market volatilities on Intermediate Capital and Ecofin Global 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 Ecofin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Ecofin Global.
Diversification Opportunities for Intermediate Capital and Ecofin Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intermediate and Ecofin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Ecofin Global Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofin Global Utilities 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 Ecofin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofin Global Utilities has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Ecofin Global go up and down completely randomly.
Pair Corralation between Intermediate Capital and Ecofin Global
Assuming the 90 days trading horizon Intermediate Capital is expected to generate 4.69 times less return on investment than Ecofin Global. In addition to that, Intermediate Capital is 1.4 times more volatile than Ecofin Global Utilities. It trades about 0.02 of its total potential returns per unit of risk. Ecofin Global Utilities is currently generating about 0.13 per unit of volatility. If you would invest 18,339 in Ecofin Global Utilities on November 29, 2024 and sell it today you would earn a total of 561.00 from holding Ecofin Global Utilities or generate 3.06% 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. Ecofin Global Utilities
Performance |
| Timeline |
| Intermediate Capital |
| Ecofin Global Utilities |
Intermediate Capital and Ecofin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Ecofin Global
The main advantage of trading using opposite Intermediate Capital and Ecofin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Ecofin Global 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 Ecofin Global will offset losses from the drop in Ecofin Global's long position.| Intermediate Capital vs. Datalogic | Intermediate Capital vs. Fortuna Silver Mines | Intermediate Capital vs. Datagroup SE | Intermediate Capital vs. Beowulf Mining |
| Ecofin Global vs. Southern Copper Corp | Ecofin Global vs. Fulcrum Metals PLC | Ecofin Global vs. Empire Metals Limited | Ecofin Global vs. Synthomer 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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