Correlation Between Income Financial and ExGen Resources
Can any of the company-specific risk be diversified away by investing in both Income Financial and ExGen Resources 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 Income Financial and ExGen Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Financial Trust and ExGen Resources, you can compare the effects of market volatilities on Income Financial and ExGen Resources 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 Income Financial with a short position of ExGen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Financial and ExGen Resources.
Diversification Opportunities for Income Financial and ExGen Resources
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Income and ExGen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Income Financial Trust and ExGen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExGen Resources and Income Financial 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 Income Financial Trust are associated (or correlated) with ExGen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExGen Resources has no effect on the direction of Income Financial i.e., Income Financial and ExGen Resources go up and down completely randomly.
Pair Corralation between Income Financial and ExGen Resources
If you would invest 867.00 in Income Financial Trust on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Income Financial Trust or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Income Financial Trust vs. ExGen Resources
Performance |
| Timeline |
| Income Financial Trust |
| ExGen Resources |
Income Financial and ExGen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Financial and ExGen Resources
The main advantage of trading using opposite Income Financial and ExGen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Financial position performs unexpectedly, ExGen Resources 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 ExGen Resources will offset losses from the drop in ExGen Resources' long position.| Income Financial vs. Dividend Select 15 | Income Financial vs. Global Dividend Growth | Income Financial vs. Brompton Split Banc | Income Financial vs. Real Estate E Commerce |
| ExGen Resources vs. Arbor Metals Corp | ExGen Resources vs. Ramp Metals | ExGen Resources vs. High Liner Foods | ExGen Resources vs. Electra Battery Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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