Correlation Between Integrum and Greater Than
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By analyzing existing cross correlation between Integrum AB Series and Greater Than AB, you can compare the effects of market volatilities on Integrum and Greater Than 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 Integrum with a short position of Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrum and Greater Than.
Diversification Opportunities for Integrum and Greater Than
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrum and Greater is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Integrum AB Series and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than AB and Integrum 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 Integrum AB Series are associated (or correlated) with Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of Integrum i.e., Integrum and Greater Than go up and down completely randomly.
Pair Corralation between Integrum and Greater Than
Assuming the 90 days trading horizon Integrum AB Series is expected to under-perform the Greater Than. But the stock apears to be less risky and, when comparing its historical volatility, Integrum AB Series is 2.65 times less risky than Greater Than. The stock trades about -0.11 of its potential returns per unit of risk. The Greater Than AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,850 in Greater Than AB on November 8, 2024 and sell it today you would earn a total of 550.00 from holding Greater Than AB or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Integrum AB Series vs. Greater Than AB
Performance |
| Timeline |
| Integrum AB Series |
| Greater Than AB |
Integrum and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrum and Greater Than
The main advantage of trading using opposite Integrum and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrum position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.The idea behind Integrum AB Series and Greater Than AB 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.| Greater Than vs. Kancera AB | Greater Than vs. Terranet AB | Greater Than vs. Divio Technologies AB | Greater Than vs. Cantargia AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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