Correlation Between INC Research and Grown Rogue
Can any of the company-specific risk be diversified away by investing in both INC Research and Grown Rogue 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 INC Research and Grown Rogue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INC Research Holdings and Grown Rogue International, you can compare the effects of market volatilities on INC Research and Grown Rogue 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 INC Research with a short position of Grown Rogue. Check out your portfolio center. Please also check ongoing floating volatility patterns of INC Research and Grown Rogue.
Diversification Opportunities for INC Research and Grown Rogue
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INC and Grown is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding INC Research Holdings and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International and INC Research 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 INC Research Holdings are associated (or correlated) with Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of INC Research i.e., INC Research and Grown Rogue go up and down completely randomly.
Pair Corralation between INC Research and Grown Rogue
Given the investment horizon of 90 days INC Research Holdings is expected to under-perform the Grown Rogue. In addition to that, INC Research is 1.4 times more volatile than Grown Rogue International. It trades about -0.1 of its total potential returns per unit of risk. Grown Rogue International is currently generating about 0.02 per unit of volatility. If you would invest 66.00 in Grown Rogue International on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Grown Rogue International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INC Research Holdings vs. Grown Rogue International
Performance |
| Timeline |
| INC Research Holdings |
| Grown Rogue International |
INC Research and Grown Rogue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INC Research and Grown Rogue
The main advantage of trading using opposite INC Research and Grown Rogue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INC Research position performs unexpectedly, Grown Rogue 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 Grown Rogue will offset losses from the drop in Grown Rogue's long position.| INC Research vs. Eliem Therapeutics | INC Research vs. Scpharmaceuticals | INC Research vs. Milestone Pharmaceuticals | INC Research vs. Seres Therapeutics |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |