Correlation Between Ingress Industrial and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and Autocorp Holding 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 Ingress Industrial and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingress Industrial Public and Autocorp Holding Public, you can compare the effects of market volatilities on Ingress Industrial and Autocorp Holding 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 Ingress Industrial with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and Autocorp Holding.
Diversification Opportunities for Ingress Industrial and Autocorp Holding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ingress and Autocorp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Ingress Industrial 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 Ingress Industrial Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and Autocorp Holding go up and down completely randomly.
Pair Corralation between Ingress Industrial and Autocorp Holding
Assuming the 90 days trading horizon Ingress Industrial Public is expected to generate 1.0 times more return on investment than Autocorp Holding. However, Ingress Industrial is 1.0 times more volatile than Autocorp Holding Public. It trades about 0.04 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.04 per unit of risk. If you would invest 58.00 in Ingress Industrial Public on August 24, 2024 and sell it today you would lose (25.00) from holding Ingress Industrial Public or give up 43.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingress Industrial Public vs. Autocorp Holding Public
Performance |
| Timeline |
| Ingress Industrial Public |
| Autocorp Holding Public |
Ingress Industrial and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingress Industrial and Autocorp Holding
The main advantage of trading using opposite Ingress Industrial and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Ingress Industrial vs. SCB X Public | Ingress Industrial vs. Kasikornbank Public | Ingress Industrial vs. PTT Public | Ingress Industrial vs. Kasikornbank Public |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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