Correlation Between Intrepid Capital and Intrepid Endurance
Can any of the company-specific risk be diversified away by investing in both Intrepid Capital and Intrepid Endurance 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 Intrepid Endurance 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 Intrepid Endurance Fund, you can compare the effects of market volatilities on Intrepid Capital and Intrepid Endurance 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 Intrepid Endurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Capital and Intrepid Endurance.
Diversification Opportunities for Intrepid Capital and Intrepid Endurance
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between INTREPID and Intrepid is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Capital Fund and Intrepid Endurance Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Endurance 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 Intrepid Endurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Endurance has no effect on the direction of Intrepid Capital i.e., Intrepid Capital and Intrepid Endurance go up and down completely randomly.
Pair Corralation between Intrepid Capital and Intrepid Endurance
Assuming the 90 days horizon Intrepid Capital Fund is expected to generate 0.55 times more return on investment than Intrepid Endurance. However, Intrepid Capital Fund is 1.83 times less risky than Intrepid Endurance. It trades about 0.14 of its potential returns per unit of risk. Intrepid Endurance Fund is currently generating about 0.03 per unit of risk. If you would invest 1,004 in Intrepid Capital Fund on September 2, 2024 and sell it today you would earn a total of 306.00 from holding Intrepid Capital Fund or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Intrepid Capital Fund vs. Intrepid Endurance Fund
Performance |
| Timeline |
| Intrepid Capital |
| Intrepid Endurance |
Intrepid Capital and Intrepid Endurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrepid Capital and Intrepid Endurance
The main advantage of trading using opposite Intrepid Capital and Intrepid Endurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Capital position performs unexpectedly, Intrepid Endurance 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 Intrepid Endurance will offset losses from the drop in Intrepid Endurance's long position.| Intrepid Capital vs. Artisan High Income | Intrepid Capital vs. Blackrock High Yield | Intrepid Capital vs. Pioneer High Yield | Intrepid Capital vs. Federated Institutional High |
| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| 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 |