Correlation Between Intuitive Investments and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and Centaur Media 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 Intuitive Investments and Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and Centaur Media, you can compare the effects of market volatilities on Intuitive Investments and Centaur Media 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 Intuitive Investments with a short position of Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and Centaur Media.
Diversification Opportunities for Intuitive Investments and Centaur Media
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intuitive and Centaur is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and Centaur Media go up and down completely randomly.
Pair Corralation between Intuitive Investments and Centaur Media
Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 2.24 times more return on investment than Centaur Media. However, Intuitive Investments is 2.24 times more volatile than Centaur Media. It trades about 0.04 of its potential returns per unit of risk. Centaur Media is currently generating about -0.02 per unit of risk. If you would invest 6,750 in Intuitive Investments Group on September 12, 2024 and sell it today you would earn a total of 5,700 from holding Intuitive Investments Group or generate 84.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Investments Group vs. Centaur Media
Performance |
| Timeline |
| Intuitive Investments |
| Centaur Media |
Intuitive Investments and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and Centaur Media
The main advantage of trading using opposite Intuitive Investments and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Intuitive Investments vs. Edita Food Industries | Intuitive Investments vs. Aeorema Communications Plc | Intuitive Investments vs. Hilton Food Group | Intuitive Investments vs. Fevertree Drinks Plc |
| Centaur Media vs. Catalyst Media Group | Centaur Media vs. CATLIN GROUP | Centaur Media vs. Tamburi Investment Partners | Centaur Media vs. Magnora ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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