Correlation Between Intermediate Capital and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and IShares Physical 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 IShares Physical 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 iShares Physical Silver, you can compare the effects of market volatilities on Intermediate Capital and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and IShares Physical.
Diversification Opportunities for Intermediate Capital and IShares Physical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intermediate and IShares is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and IShares Physical go up and down completely randomly.
Pair Corralation between Intermediate Capital and IShares Physical
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 1.78 times more return on investment than IShares Physical. However, Intermediate Capital is 1.78 times more volatile than iShares Physical Silver. It trades about 0.2 of its potential returns per unit of risk. iShares Physical Silver is currently generating about 0.32 per unit of risk. If you would invest 206,600 in Intermediate Capital Group on November 1, 2024 and sell it today you would earn a total of 20,400 from holding Intermediate Capital Group or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intermediate Capital Group vs. iShares Physical Silver
Performance |
| Timeline |
| Intermediate Capital |
| iShares Physical Silver |
Intermediate Capital and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and IShares Physical
The main advantage of trading using opposite Intermediate Capital and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Intermediate Capital vs. Coeur Mining | Intermediate Capital vs. Cognizant Technology Solutions | Intermediate Capital vs. Adriatic Metals | Intermediate Capital vs. Medical Properties Trust |
| IShares Physical vs. Axway Software SA | IShares Physical vs. Check Point Software | IShares Physical vs. Intermediate Capital Group | IShares Physical vs. Catena Media 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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