Correlation Between Intermediate Capital and One Media
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and One 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 One 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 One Media iP, you can compare the effects of market volatilities on Intermediate Capital and One 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 One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and One Media.
Diversification Opportunities for Intermediate Capital and One Media
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intermediate and One is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP 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 One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and One Media go up and down completely randomly.
Pair Corralation between Intermediate Capital and One Media
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.74 times more return on investment than One Media. However, Intermediate Capital Group is 1.36 times less risky than One Media. It trades about 0.07 of its potential returns per unit of risk. One Media iP is currently generating about -0.03 per unit of risk. If you would invest 112,264 in Intermediate Capital Group on August 25, 2024 and sell it today you would earn a total of 97,136 from holding Intermediate Capital Group or generate 86.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Intermediate Capital Group vs. One Media iP
Performance |
| Timeline |
| Intermediate Capital |
| One Media iP |
Intermediate Capital and One Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and One Media
The main advantage of trading using opposite Intermediate Capital and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, One 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 One Media will offset losses from the drop in One Media's long position.| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. Oncimmune Holdings plc | Intermediate Capital vs. Invesco Health Care | Intermediate Capital vs. Coor Service Management |
| One Media vs. InterContinental Hotels Group | One Media vs. Metals Exploration Plc | One Media vs. Coeur Mining | One Media vs. Bisichi Mining 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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