Correlation Between Integrated Ventures and Main International
Can any of the company-specific risk be diversified away by investing in both Integrated Ventures and Main International 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 Integrated Ventures and Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Ventures and Main International ETF, you can compare the effects of market volatilities on Integrated Ventures and Main International 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 Integrated Ventures with a short position of Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Ventures and Main International.
Diversification Opportunities for Integrated Ventures and Main International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integrated and Main is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Ventures and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF and Integrated Ventures 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 Integrated Ventures are associated (or correlated) with Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of Integrated Ventures i.e., Integrated Ventures and Main International go up and down completely randomly.
Pair Corralation between Integrated Ventures and Main International
Given the investment horizon of 90 days Integrated Ventures is expected to under-perform the Main International. In addition to that, Integrated Ventures is 5.03 times more volatile than Main International ETF. It trades about -0.53 of its total potential returns per unit of risk. Main International ETF is currently generating about 0.23 per unit of volatility. If you would invest 2,203 in Main International ETF on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Main International ETF or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Ventures vs. Main International ETF
Performance |
| Timeline |
| Integrated Ventures |
| Main International ETF |
Integrated Ventures and Main International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Ventures and Main International
The main advantage of trading using opposite Integrated Ventures and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Ventures position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.| Integrated Ventures vs. LifeSpeak | Integrated Ventures vs. Wishpond Technologies | Integrated Ventures vs. Mobivity Holdings | Integrated Ventures vs. Investview |
| Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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