Correlation Between Intermediate Capital and Invesco Physical
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Invesco 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 Invesco 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 Invesco Physical Silver, you can compare the effects of market volatilities on Intermediate Capital and Invesco 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 Invesco Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Invesco Physical.
Diversification Opportunities for Intermediate Capital and Invesco Physical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intermediate and Invesco is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Invesco Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco 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 Invesco Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Physical Silver has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Invesco Physical go up and down completely randomly.
Pair Corralation between Intermediate Capital and Invesco Physical
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.86 times more return on investment than Invesco Physical. However, Intermediate Capital Group is 1.16 times less risky than Invesco Physical. It trades about 0.01 of its potential returns per unit of risk. Invesco Physical Silver is currently generating about -0.11 per unit of risk. If you would invest 205,118 in Intermediate Capital Group on September 22, 2024 and sell it today you would lose (118.00) from holding Intermediate Capital Group or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Invesco Physical Silver
Performance |
| Timeline |
| Intermediate Capital |
| Invesco Physical Silver |
Intermediate Capital and Invesco Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Invesco Physical
The main advantage of trading using opposite Intermediate Capital and Invesco Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Invesco 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 Invesco Physical will offset losses from the drop in Invesco Physical's long position.| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. CATLIN GROUP | Intermediate Capital vs. Tamburi Investment Partners | Intermediate Capital vs. Magnora ASA |
| Invesco Physical vs. Invesco Physical Gold | Invesco Physical vs. Invesco Physical Gold | Invesco Physical vs. Amundi Physical Gold | Invesco Physical vs. iShares Physical Silver |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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