Correlation Between International Investors and North Square
Can any of the company-specific risk be diversified away by investing in both International Investors and North Square 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 International Investors and North Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Investors Gold and North Square Investments, you can compare the effects of market volatilities on International Investors and North Square 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 International Investors with a short position of North Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and North Square.
Diversification Opportunities for International Investors and North Square
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and North is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold and North Square Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Investments and International Investors 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 International Investors Gold are associated (or correlated) with North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Investments has no effect on the direction of International Investors i.e., International Investors and North Square go up and down completely randomly.
Pair Corralation between International Investors and North Square
Assuming the 90 days horizon International Investors Gold is expected to under-perform the North Square. In addition to that, International Investors is 3.3 times more volatile than North Square Investments. It trades about -0.1 of its total potential returns per unit of risk. North Square Investments is currently generating about 0.02 per unit of volatility. If you would invest 1,153 in North Square Investments on September 5, 2024 and sell it today you would earn a total of 3.00 from holding North Square Investments or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Investors Gold vs. North Square Investments
Performance |
| Timeline |
| International Investors |
| North Square Investments |
International Investors and North Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Investors and North Square
The main advantage of trading using opposite International Investors and North Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors position performs unexpectedly, North Square 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 North Square will offset losses from the drop in North Square's long position.| International Investors vs. Eic Value Fund | International Investors vs. Issachar Fund Class | International Investors vs. Ab Small Cap | International Investors vs. Vanguard Windsor Fund |
| North Square vs. Global Gold Fund | North Square vs. International Investors Gold | North Square vs. Oppenheimer Gold Special | North Square vs. Europac Gold Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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