Correlation Between Intrepid Endurance and Intrepid Capital
Can any of the company-specific risk be diversified away by investing in both Intrepid Endurance and Intrepid Capital 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 Intrepid Endurance and Intrepid Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrepid Endurance Fund and Intrepid Capital Fund, you can compare the effects of market volatilities on Intrepid Endurance and Intrepid Capital 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 Intrepid Endurance with a short position of Intrepid Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Endurance and Intrepid Capital.
Diversification Opportunities for Intrepid Endurance and Intrepid Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intrepid and Intrepid is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Endurance Fund and Intrepid Capital Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Capital and Intrepid Endurance 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 Intrepid Endurance Fund are associated (or correlated) with Intrepid Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Capital has no effect on the direction of Intrepid Endurance i.e., Intrepid Endurance and Intrepid Capital go up and down completely randomly.
Pair Corralation between Intrepid Endurance and Intrepid Capital
Assuming the 90 days horizon Intrepid Endurance is expected to generate 3.85 times less return on investment than Intrepid Capital. In addition to that, Intrepid Endurance is 1.66 times more volatile than Intrepid Capital Fund. It trades about 0.02 of its total potential returns per unit of risk. Intrepid Capital Fund is currently generating about 0.14 per unit of volatility. If you would invest 1,164 in Intrepid Capital Fund on September 1, 2024 and sell it today you would earn a total of 139.00 from holding Intrepid Capital Fund or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
Intrepid Endurance Fund vs. Intrepid Capital Fund
Performance |
| Timeline |
| Intrepid Endurance |
| Intrepid Capital |
Intrepid Endurance and Intrepid Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrepid Endurance and Intrepid Capital
The main advantage of trading using opposite Intrepid Endurance and Intrepid Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Endurance position performs unexpectedly, Intrepid Capital 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 Intrepid Capital will offset losses from the drop in Intrepid Capital's long position.| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
| Intrepid Capital vs. Intrepid Endurance Fund | Intrepid Capital vs. James Balanced Golden | Intrepid Capital vs. Greenspring Fund Retail | Intrepid Capital vs. Berwyn Income Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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