Correlation Between Integral Acquisition and Touchmark Bancshares
Can any of the company-specific risk be diversified away by investing in both Integral Acquisition and Touchmark Bancshares 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 Integral Acquisition and Touchmark Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Acquisition 1 and Touchmark Bancshares, you can compare the effects of market volatilities on Integral Acquisition and Touchmark Bancshares 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 Integral Acquisition with a short position of Touchmark Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral Acquisition and Touchmark Bancshares.
Diversification Opportunities for Integral Acquisition and Touchmark Bancshares
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integral and Touchmark is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Integral Acquisition 1 and Touchmark Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchmark Bancshares and Integral Acquisition 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 Integral Acquisition 1 are associated (or correlated) with Touchmark Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchmark Bancshares has no effect on the direction of Integral Acquisition i.e., Integral Acquisition and Touchmark Bancshares go up and down completely randomly.
Pair Corralation between Integral Acquisition and Touchmark Bancshares
Given the investment horizon of 90 days Integral Acquisition 1 is expected to generate 0.52 times more return on investment than Touchmark Bancshares. However, Integral Acquisition 1 is 1.91 times less risky than Touchmark Bancshares. It trades about -0.08 of its potential returns per unit of risk. Touchmark Bancshares is currently generating about -0.13 per unit of risk. If you would invest 1,110 in Integral Acquisition 1 on September 2, 2024 and sell it today you would lose (32.00) from holding Integral Acquisition 1 or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.69% |
| Values | Daily Returns |
Integral Acquisition 1 vs. Touchmark Bancshares
Performance |
| Timeline |
| Integral Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Touchmark Bancshares |
Integral Acquisition and Touchmark Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral Acquisition and Touchmark Bancshares
The main advantage of trading using opposite Integral Acquisition and Touchmark Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral Acquisition position performs unexpectedly, Touchmark Bancshares 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 Touchmark Bancshares will offset losses from the drop in Touchmark Bancshares' long position.The idea behind Integral Acquisition 1 and Touchmark Bancshares pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Touchmark Bancshares vs. Piraeus Bank SA | Touchmark Bancshares vs. Turkiye Garanti Bankasi | Touchmark Bancshares vs. Uwharrie Capital Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |