Correlation Between Intrepid Capital and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Intrepid Capital and Dow Jones 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 Capital and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrepid Capital Fund and Dow Jones Industrial, you can compare the effects of market volatilities on Intrepid Capital and Dow Jones 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 Capital with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Capital and Dow Jones.
Diversification Opportunities for Intrepid Capital and Dow Jones
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intrepid and Dow is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Capital Fund and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Intrepid Capital 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 Capital Fund are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Intrepid Capital i.e., Intrepid Capital and Dow Jones go up and down completely randomly.
Pair Corralation between Intrepid Capital and Dow Jones
Assuming the 90 days horizon Intrepid Capital is expected to generate 1.12 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Intrepid Capital Fund is 1.39 times less risky than Dow Jones. It trades about 0.46 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intrepid Capital Fund vs. Dow Jones Industrial
Performance |
| Timeline |
Intrepid Capital and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Intrepid Capital Fund
Pair trading matchups for Intrepid Capital
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Intrepid Capital and Dow Jones
The main advantage of trading using opposite Intrepid Capital and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Capital position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Intrepid Capital vs. Intrepid Endurance Fund | Intrepid Capital vs. James Balanced Golden | Intrepid Capital vs. Greenspring Fund Retail | Intrepid Capital vs. Berwyn Income Fund |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |