Correlation Between Intergroup and Kewaunee Scientific
Can any of the company-specific risk be diversified away by investing in both Intergroup and Kewaunee Scientific 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 Intergroup and Kewaunee Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Intergroup and Kewaunee Scientific, you can compare the effects of market volatilities on Intergroup and Kewaunee Scientific 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 Intergroup with a short position of Kewaunee Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intergroup and Kewaunee Scientific.
Diversification Opportunities for Intergroup and Kewaunee Scientific
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intergroup and Kewaunee is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and Kewaunee Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kewaunee Scientific and Intergroup 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 The Intergroup are associated (or correlated) with Kewaunee Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kewaunee Scientific has no effect on the direction of Intergroup i.e., Intergroup and Kewaunee Scientific go up and down completely randomly.
Pair Corralation between Intergroup and Kewaunee Scientific
Given the investment horizon of 90 days The Intergroup is expected to under-perform the Kewaunee Scientific. But the stock apears to be less risky and, when comparing its historical volatility, The Intergroup is 3.26 times less risky than Kewaunee Scientific. The stock trades about -0.1 of its potential returns per unit of risk. The Kewaunee Scientific is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,230 in Kewaunee Scientific on August 29, 2024 and sell it today you would earn a total of 981.00 from holding Kewaunee Scientific or generate 30.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Intergroup vs. Kewaunee Scientific
Performance |
| Timeline |
| Intergroup |
| Kewaunee Scientific |
Intergroup and Kewaunee Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intergroup and Kewaunee Scientific
The main advantage of trading using opposite Intergroup and Kewaunee Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intergroup position performs unexpectedly, Kewaunee Scientific 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 Kewaunee Scientific will offset losses from the drop in Kewaunee Scientific's long position.| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels Group |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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