Correlation Between Investcorp India and Screaming Eagle

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Investcorp India and Screaming Eagle 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 Screaming Eagle 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 Screaming Eagle Acquisition, you can compare the effects of market volatilities on Investcorp India and Screaming Eagle 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 Screaming Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp India and Screaming Eagle.

Diversification Opportunities for Investcorp India and Screaming Eagle

0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Investcorp and Screaming is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp India Acquisition and Screaming Eagle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Screaming Eagle Acqu 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 Screaming Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Screaming Eagle Acqu has no effect on the direction of Investcorp India i.e., Investcorp India and Screaming Eagle go up and down completely randomly.

Pair Corralation between Investcorp India and Screaming Eagle

If you would invest  1,155  in Investcorp India Acquisition on September 13, 2024 and sell it today you would earn a total of  10.00  from holding Investcorp India Acquisition or generate 0.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy2.33%
ValuesDaily Returns

Investcorp India Acquisition  vs.  Screaming Eagle Acquisition

 Performance 
       Timeline  
Investcorp India Acq 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Investcorp India Acquisition are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Investcorp India is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
Screaming Eagle Acqu 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Screaming Eagle Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Screaming Eagle is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Investcorp India and Screaming Eagle Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Investcorp India and Screaming Eagle

The main advantage of trading using opposite Investcorp India and Screaming Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp India position performs unexpectedly, Screaming Eagle 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 Screaming Eagle will offset losses from the drop in Screaming Eagle's long position.
The idea behind Investcorp India Acquisition and Screaming Eagle Acquisition 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.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.