Correlation Between Investcorp Credit and Transcontinental
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Transcontinental 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 Transcontinental 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 Transcontinental Realty Investors, you can compare the effects of market volatilities on Investcorp Credit and Transcontinental 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 Transcontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Transcontinental.
Diversification Opportunities for Investcorp Credit and Transcontinental
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Investcorp and Transcontinental is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Transcontinental Realty Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcontinental Realty 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 Transcontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcontinental Realty has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Transcontinental go up and down completely randomly.
Pair Corralation between Investcorp Credit and Transcontinental
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 1.35 times more return on investment than Transcontinental. However, Investcorp Credit is 1.35 times more volatile than Transcontinental Realty Investors. It trades about 0.18 of its potential returns per unit of risk. Transcontinental Realty Investors is currently generating about 0.08 per unit of risk. If you would invest 300.00 in Investcorp Credit Management on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Investcorp Credit Management or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investcorp Credit Management vs. Transcontinental Realty Invest
Performance |
| Timeline |
| Investcorp Credit |
| Transcontinental Realty |
Investcorp Credit and Transcontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Transcontinental
The main advantage of trading using opposite Investcorp Credit and Transcontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, Transcontinental 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 Transcontinental will offset losses from the drop in Transcontinental'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 |
| Transcontinental vs. Re Max Holding | Transcontinental vs. Maui Land Pineapple | Transcontinental vs. Redfin Corp | Transcontinental vs. Ohmyhome Limited Ordinary |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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