Correlation Between Ingress Industrial and Christiani Nielsen
Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and Christiani Nielsen 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 Christiani Nielsen 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 Christiani Nielsen Public, you can compare the effects of market volatilities on Ingress Industrial and Christiani Nielsen 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 Christiani Nielsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and Christiani Nielsen.
Diversification Opportunities for Ingress Industrial and Christiani Nielsen
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ingress and Christiani is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and Christiani Nielsen Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christiani Nielsen 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 Christiani Nielsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christiani Nielsen Public has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and Christiani Nielsen go up and down completely randomly.
Pair Corralation between Ingress Industrial and Christiani Nielsen
Assuming the 90 days trading horizon Ingress Industrial Public is expected to under-perform the Christiani Nielsen. But the stock apears to be less risky and, when comparing its historical volatility, Ingress Industrial Public is 1.24 times less risky than Christiani Nielsen. The stock trades about -0.36 of its potential returns per unit of risk. The Christiani Nielsen Public is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 125.00 in Christiani Nielsen Public on August 28, 2024 and sell it today you would lose (12.00) from holding Christiani Nielsen Public or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingress Industrial Public vs. Christiani Nielsen Public
Performance |
| Timeline |
| Ingress Industrial Public |
| Christiani Nielsen Public |
Ingress Industrial and Christiani Nielsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingress Industrial and Christiani Nielsen
The main advantage of trading using opposite Ingress Industrial and Christiani Nielsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, Christiani Nielsen 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 Christiani Nielsen will offset losses from the drop in Christiani Nielsen'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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