Correlation Between Investcorp Credit and Rafael Holdings
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Rafael Holdings 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 Rafael Holdings 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 Rafael Holdings Class, you can compare the effects of market volatilities on Investcorp Credit and Rafael Holdings 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 Rafael Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Rafael Holdings.
Diversification Opportunities for Investcorp Credit and Rafael Holdings
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investcorp and Rafael is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Rafael Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rafael Holdings Class 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 Rafael Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rafael Holdings Class has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Rafael Holdings go up and down completely randomly.
Pair Corralation between Investcorp Credit and Rafael Holdings
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 0.5 times more return on investment than Rafael Holdings. However, Investcorp Credit Management is 1.99 times less risky than Rafael Holdings. It trades about 0.11 of its potential returns per unit of risk. Rafael Holdings Class is currently generating about -0.01 per unit of risk. If you would invest 302.00 in Investcorp Credit Management on August 31, 2024 and sell it today you would earn a total of 23.00 from holding Investcorp Credit Management or generate 7.62% 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. Rafael Holdings Class
Performance |
| Timeline |
| Investcorp Credit |
| Rafael Holdings Class |
Investcorp Credit and Rafael Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Rafael Holdings
The main advantage of trading using opposite Investcorp Credit and Rafael Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, Rafael Holdings 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 Rafael Holdings will offset losses from the drop in Rafael Holdings' 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 |
| Rafael Holdings vs. Fangdd Network Group | Rafael Holdings vs. IRSA Inversiones Y | Rafael Holdings vs. RMR Group | Rafael Holdings vs. Kennedy Wilson Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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