Correlation Between International Consolidated and STGEORGE MINING
Can any of the company-specific risk be diversified away by investing in both International Consolidated and STGEORGE MINING 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 Consolidated and STGEORGE MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and STGEORGE MINING LTD, you can compare the effects of market volatilities on International Consolidated and STGEORGE MINING 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 Consolidated with a short position of STGEORGE MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and STGEORGE MINING.
Diversification Opportunities for International Consolidated and STGEORGE MINING
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and STGEORGE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and STGEORGE MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STGEORGE MINING LTD and International Consolidated 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 Consolidated Airlines are associated (or correlated) with STGEORGE MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STGEORGE MINING LTD has no effect on the direction of International Consolidated i.e., International Consolidated and STGEORGE MINING go up and down completely randomly.
Pair Corralation between International Consolidated and STGEORGE MINING
Assuming the 90 days horizon International Consolidated is expected to generate 1.34 times less return on investment than STGEORGE MINING. But when comparing it to its historical volatility, International Consolidated Airlines is 4.28 times less risky than STGEORGE MINING. It trades about 0.34 of its potential returns per unit of risk. STGEORGE MINING LTD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.20 in STGEORGE MINING LTD on November 8, 2024 and sell it today you would earn a total of 0.15 from holding STGEORGE MINING LTD or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Air vs. STGEORGE MINING LTD
Performance |
| Timeline |
| International Consolidated |
| STGEORGE MINING LTD |
International Consolidated and STGEORGE MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and STGEORGE MINING
The main advantage of trading using opposite International Consolidated and STGEORGE MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, STGEORGE MINING 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 STGEORGE MINING will offset losses from the drop in STGEORGE MINING's long position.| International Consolidated vs. ZINC MEDIA GR | International Consolidated vs. CNVISION MEDIA | International Consolidated vs. Ribbon Communications | International Consolidated vs. Highlight Communications AG |
| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
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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