Correlation Between Investcorp India and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both Investcorp India and Cartesian Growth 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 Investcorp India and Cartesian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp India Acquisition and Cartesian Growth, you can compare the effects of market volatilities on Investcorp India and Cartesian Growth 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 Investcorp India with a short position of Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp India and Cartesian Growth.
Diversification Opportunities for Investcorp India and Cartesian Growth
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investcorp and Cartesian is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp India Acquisition and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth and Investcorp India 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 Investcorp India Acquisition are associated (or correlated) with Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Investcorp India i.e., Investcorp India and Cartesian Growth go up and down completely randomly.
Pair Corralation between Investcorp India and Cartesian Growth
Assuming the 90 days horizon Investcorp India Acquisition is expected to generate 6.71 times more return on investment than Cartesian Growth. However, Investcorp India is 6.71 times more volatile than Cartesian Growth. It trades about 0.09 of its potential returns per unit of risk. Cartesian Growth is currently generating about 0.22 per unit of risk. If you would invest 1,167 in Investcorp India Acquisition on November 3, 2024 and sell it today you would earn a total of 19.00 from holding Investcorp India Acquisition or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Investcorp India Acquisition vs. Cartesian Growth
Performance |
| Timeline |
| Investcorp India Acq |
| Cartesian Growth |
Investcorp India and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp India and Cartesian Growth
The main advantage of trading using opposite Investcorp India and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp India position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.| Investcorp India vs. Coupang LLC | Investcorp India vs. National CineMedia | Investcorp India vs. Cheche Group Class | Investcorp India vs. Cars Inc |
| Cartesian Growth vs. Investcorp India Acquisition | Cartesian Growth vs. Rf Acquisition Corp | Cartesian Growth vs. Metal Sky Star |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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