Correlation Between Ingress Industrial and AIM Industrial
Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and AIM Industrial 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 AIM Industrial 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 AIM Industrial Growth, you can compare the effects of market volatilities on Ingress Industrial and AIM Industrial 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 AIM Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and AIM Industrial.
Diversification Opportunities for Ingress Industrial and AIM Industrial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ingress and AIM is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and AIM Industrial Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Industrial Growth 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 AIM Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Industrial Growth has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and AIM Industrial go up and down completely randomly.
Pair Corralation between Ingress Industrial and AIM Industrial
Assuming the 90 days trading horizon Ingress Industrial Public is expected to generate 65.49 times more return on investment than AIM Industrial. However, Ingress Industrial is 65.49 times more volatile than AIM Industrial Growth. It trades about 0.05 of its potential returns per unit of risk. AIM Industrial Growth is currently generating about 0.02 per unit of risk. If you would invest 48.00 in Ingress Industrial Public on September 14, 2024 and sell it today you would lose (15.00) from holding Ingress Industrial Public or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingress Industrial Public vs. AIM Industrial Growth
Performance |
| Timeline |
| Ingress Industrial Public |
| AIM Industrial Growth |
Ingress Industrial and AIM Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingress Industrial and AIM Industrial
The main advantage of trading using opposite Ingress Industrial and AIM Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, AIM Industrial 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 AIM Industrial will offset losses from the drop in AIM Industrial's long position.| Ingress Industrial vs. Hwa Fong Rubber | Ingress Industrial vs. AAPICO Hitech Public | Ingress Industrial vs. Haad Thip Public | Ingress Industrial vs. Italian Thai Development 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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