Correlation Between Investcorp Credit and Generation Income
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Generation Income 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 Generation Income 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 Generation Income Properties, you can compare the effects of market volatilities on Investcorp Credit and Generation Income 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 Generation Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Generation Income.
Diversification Opportunities for Investcorp Credit and Generation Income
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investcorp and Generation is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Generation Income Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Income 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 Generation Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Income has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Generation Income go up and down completely randomly.
Pair Corralation between Investcorp Credit and Generation Income
Given the investment horizon of 90 days Investcorp Credit is expected to generate 19.9 times less return on investment than Generation Income. But when comparing it to its historical volatility, Investcorp Credit Management is 12.5 times less risky than Generation Income. It trades about 0.12 of its potential returns per unit of risk. Generation Income Properties is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Generation Income Properties on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Generation Income Properties or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Investcorp Credit Management vs. Generation Income Properties
Performance |
| Timeline |
| Investcorp Credit |
| Generation Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Investcorp Credit and Generation Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Generation Income
The main advantage of trading using opposite Investcorp Credit and Generation Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, Generation Income 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 Generation Income will offset losses from the drop in Generation Income's long position.| Investcorp Credit vs. PowerUp Acquisition Corp | Investcorp Credit vs. Aurora Innovation | Investcorp Credit vs. HUMANA INC | Investcorp Credit vs. Aquagold International |
| Generation Income vs. Investcorp Credit Management | Generation Income vs. Medalist Diversified Reit | Generation Income vs. Aquagold International | Generation Income vs. Morningstar Unconstrained Allocation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |