Correlation Between Intuitive Investments and Sage Group
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and Sage Group 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 Sage Group 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 Sage Group PLC, you can compare the effects of market volatilities on Intuitive Investments and Sage Group 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 Sage Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and Sage Group.
Diversification Opportunities for Intuitive Investments and Sage Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and Sage is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and Sage Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sage Group PLC 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 Sage Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sage Group PLC has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and Sage Group go up and down completely randomly.
Pair Corralation between Intuitive Investments and Sage Group
Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 3.59 times more return on investment than Sage Group. However, Intuitive Investments is 3.59 times more volatile than Sage Group PLC. It trades about 0.04 of its potential returns per unit of risk. Sage Group PLC is currently generating about 0.08 per unit of risk. If you would invest 6,750 in Intuitive Investments Group on September 23, 2024 and sell it today you would earn a total of 5,250 from holding Intuitive Investments Group or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Investments Group vs. Sage Group PLC
Performance |
| Timeline |
| Intuitive Investments |
| Sage Group PLC |
Intuitive Investments and Sage Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and Sage Group
The main advantage of trading using opposite Intuitive Investments and Sage Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, Sage Group 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 Sage Group will offset losses from the drop in Sage Group's long position.| Intuitive Investments vs. Wheaton Precious Metals | Intuitive Investments vs. METALL ZUG AG | Intuitive Investments vs. Fulcrum Metals PLC | Intuitive Investments vs. Kinnevik Investment AB |
| Sage Group vs. Samsung Electronics Co | Sage Group vs. Samsung Electronics Co | Sage Group vs. Hyundai Motor | Sage Group vs. Toyota Motor Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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