Correlation Between Inventis and CAR GROUP
Can any of the company-specific risk be diversified away by investing in both Inventis and CAR GROUP 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 Inventis and CAR GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventis and CAR GROUP LIMITED, you can compare the effects of market volatilities on Inventis and CAR GROUP 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 Inventis with a short position of CAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventis and CAR GROUP.
Diversification Opportunities for Inventis and CAR GROUP
Excellent diversification
The 3 months correlation between Inventis and CAR is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Inventis and CAR GROUP LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAR GROUP LIMITED and Inventis 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 Inventis are associated (or correlated) with CAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAR GROUP LIMITED has no effect on the direction of Inventis i.e., Inventis and CAR GROUP go up and down completely randomly.
Pair Corralation between Inventis and CAR GROUP
Assuming the 90 days trading horizon Inventis is expected to under-perform the CAR GROUP. In addition to that, Inventis is 1.63 times more volatile than CAR GROUP LIMITED. It trades about -0.09 of its total potential returns per unit of risk. CAR GROUP LIMITED is currently generating about 0.11 per unit of volatility. If you would invest 2,052 in CAR GROUP LIMITED on September 3, 2024 and sell it today you would earn a total of 2,098 from holding CAR GROUP LIMITED or generate 102.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventis vs. CAR GROUP LIMITED
Performance |
| Timeline |
| Inventis |
| CAR GROUP LIMITED |
Inventis and CAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventis and CAR GROUP
The main advantage of trading using opposite Inventis and CAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventis position performs unexpectedly, CAR GROUP 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 CAR GROUP will offset losses from the drop in CAR GROUP's long position.| Inventis vs. Centaurus Metals | Inventis vs. Ironbark Capital | Inventis vs. Leeuwin Metals | Inventis vs. Legacy Iron Ore |
| CAR GROUP vs. The Environmental Group | CAR GROUP vs. Macquarie Technology Group | CAR GROUP vs. TTG Fintech | CAR GROUP vs. Spirit Telecom |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |