Correlation Between Investcorp Credit and FirstService Corp
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and FirstService Corp 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 Investcorp Credit and FirstService Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Credit Management and FirstService Corp, you can compare the effects of market volatilities on Investcorp Credit and FirstService Corp 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 Investcorp Credit with a short position of FirstService Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and FirstService Corp.
Diversification Opportunities for Investcorp Credit and FirstService Corp
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investcorp and FirstService is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and FirstService Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstService Corp and Investcorp Credit 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 Investcorp Credit Management are associated (or correlated) with FirstService Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstService Corp has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and FirstService Corp go up and down completely randomly.
Pair Corralation between Investcorp Credit and FirstService Corp
Given the investment horizon of 90 days Investcorp Credit is expected to generate 2.25 times less return on investment than FirstService Corp. In addition to that, Investcorp Credit is 1.58 times more volatile than FirstService Corp. It trades about 0.02 of its total potential returns per unit of risk. FirstService Corp is currently generating about 0.08 per unit of volatility. If you would invest 12,208 in FirstService Corp on August 30, 2024 and sell it today you would earn a total of 7,272 from holding FirstService Corp or generate 59.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investcorp Credit Management vs. FirstService Corp
Performance |
| Timeline |
| Investcorp Credit |
| FirstService Corp |
Investcorp Credit and FirstService Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and FirstService Corp
The main advantage of trading using opposite Investcorp Credit and FirstService Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, FirstService Corp 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 FirstService Corp will offset losses from the drop in FirstService Corp's long position.| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
| FirstService Corp vs. Cushman Wakefield plc | FirstService Corp vs. CBRE Group Class | FirstService Corp vs. Jones Lang LaSalle | FirstService Corp vs. Marcus Millichap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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