Correlation Between Ingenia Communities and FleetPartners
Can any of the company-specific risk be diversified away by investing in both Ingenia Communities and FleetPartners 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 Ingenia Communities and FleetPartners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingenia Communities Group and FleetPartners Group, you can compare the effects of market volatilities on Ingenia Communities and FleetPartners 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 Ingenia Communities with a short position of FleetPartners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenia Communities and FleetPartners.
Diversification Opportunities for Ingenia Communities and FleetPartners
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ingenia and FleetPartners is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ingenia Communities Group and FleetPartners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FleetPartners Group and Ingenia Communities 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 Ingenia Communities Group are associated (or correlated) with FleetPartners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FleetPartners Group has no effect on the direction of Ingenia Communities i.e., Ingenia Communities and FleetPartners go up and down completely randomly.
Pair Corralation between Ingenia Communities and FleetPartners
Assuming the 90 days trading horizon Ingenia Communities Group is expected to generate 0.69 times more return on investment than FleetPartners. However, Ingenia Communities Group is 1.44 times less risky than FleetPartners. It trades about 0.16 of its potential returns per unit of risk. FleetPartners Group is currently generating about 0.08 per unit of risk. If you would invest 491.00 in Ingenia Communities Group on August 30, 2024 and sell it today you would earn a total of 26.00 from holding Ingenia Communities Group or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenia Communities Group vs. FleetPartners Group
Performance |
| Timeline |
| Ingenia Communities |
| FleetPartners Group |
Ingenia Communities and FleetPartners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenia Communities and FleetPartners
The main advantage of trading using opposite Ingenia Communities and FleetPartners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenia Communities position performs unexpectedly, FleetPartners 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 FleetPartners will offset losses from the drop in FleetPartners' long position.| Ingenia Communities vs. Alternative Investment Trust | Ingenia Communities vs. Qbe Insurance Group | Ingenia Communities vs. Navigator Global Investments | Ingenia Communities vs. Carlton Investments |
| FleetPartners vs. Lendlease Group | FleetPartners vs. Kneomedia | FleetPartners vs. Australian Unity Office | FleetPartners vs. Bio Gene Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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