Correlation Between IES Holdings and Advanced Container
Can any of the company-specific risk be diversified away by investing in both IES Holdings and Advanced Container 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 IES Holdings and Advanced Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IES Holdings and Advanced Container Technologies, you can compare the effects of market volatilities on IES Holdings and Advanced Container 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 IES Holdings with a short position of Advanced Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of IES Holdings and Advanced Container.
Diversification Opportunities for IES Holdings and Advanced Container
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IES and Advanced is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding IES Holdings and Advanced Container Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Container and IES Holdings 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 IES Holdings are associated (or correlated) with Advanced Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Container has no effect on the direction of IES Holdings i.e., IES Holdings and Advanced Container go up and down completely randomly.
Pair Corralation between IES Holdings and Advanced Container
Given the investment horizon of 90 days IES Holdings is expected to generate 0.39 times more return on investment than Advanced Container. However, IES Holdings is 2.57 times less risky than Advanced Container. It trades about 0.14 of its potential returns per unit of risk. Advanced Container Technologies is currently generating about -0.04 per unit of risk. If you would invest 5,591 in IES Holdings on September 12, 2024 and sell it today you would earn a total of 19,627 from holding IES Holdings or generate 351.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IES Holdings vs. Advanced Container Technologie
Performance |
| Timeline |
| IES Holdings |
| Advanced Container |
IES Holdings and Advanced Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IES Holdings and Advanced Container
The main advantage of trading using opposite IES Holdings and Advanced Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IES Holdings position performs unexpectedly, Advanced Container 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 Advanced Container will offset losses from the drop in Advanced Container's long position.| IES Holdings vs. EMCOR Group | IES Holdings vs. Comfort Systems USA | IES Holdings vs. Primoris Services | IES Holdings vs. Granite Construction Incorporated |
| Advanced Container vs. Vanguard SP 500 | Advanced Container vs. Vanguard Real Estate | Advanced Container vs. Vanguard Total Bond | Advanced Container vs. Vanguard High Dividend |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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