Correlation Between Intermediate Capital and Trainline Plc
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Trainline Plc 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 Trainline Plc 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 Trainline Plc, you can compare the effects of market volatilities on Intermediate Capital and Trainline Plc 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 Trainline Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Trainline Plc.
Diversification Opportunities for Intermediate Capital and Trainline Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermediate and Trainline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Trainline Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trainline Plc 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 Trainline Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trainline Plc has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Trainline Plc go up and down completely randomly.
Pair Corralation between Intermediate Capital and Trainline Plc
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.85 times more return on investment than Trainline Plc. However, Intermediate Capital Group is 1.18 times less risky than Trainline Plc. It trades about 0.08 of its potential returns per unit of risk. Trainline Plc is currently generating about 0.0 per unit of risk. If you would invest 212,430 in Intermediate Capital Group on October 26, 2024 and sell it today you would earn a total of 19,170 from holding Intermediate Capital Group or generate 9.02% 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. Trainline Plc
Performance |
| Timeline |
| Intermediate Capital |
| Trainline Plc |
Intermediate Capital and Trainline Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Trainline Plc
The main advantage of trading using opposite Intermediate Capital and Trainline Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Trainline Plc 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 Trainline Plc will offset losses from the drop in Trainline Plc's long position.| Intermediate Capital vs. SupplyMe Capital PLC | Intermediate Capital vs. Premier African Minerals | Intermediate Capital vs. SANTANDER UK 8 | Intermediate Capital vs. Tower Resources plc |
| Trainline Plc vs. Samsung Electronics Co | Trainline Plc vs. Samsung Electronics Co | Trainline Plc vs. OTP Bank Nyrt | Trainline Plc vs. Halyk Bank of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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