Correlation Between Intech Us and Large Cap
Can any of the company-specific risk be diversified away by investing in both Intech Us and Large Cap 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 Intech Us and Large Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Managed Volatility and Large Cap E, you can compare the effects of market volatilities on Intech Us and Large Cap 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 Intech Us with a short position of Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Us and Large Cap.
Diversification Opportunities for Intech Us and Large Cap
Almost no diversification
The 3 months correlation between Intech and Large is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Intech Managed Volatility and Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap E and Intech Us 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 Intech Managed Volatility are associated (or correlated) with Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap E has no effect on the direction of Intech Us i.e., Intech Us and Large Cap go up and down completely randomly.
Pair Corralation between Intech Us and Large Cap
Assuming the 90 days horizon Intech Managed Volatility is expected to generate 0.74 times more return on investment than Large Cap. However, Intech Managed Volatility is 1.35 times less risky than Large Cap. It trades about 0.41 of its potential returns per unit of risk. Large Cap E is currently generating about 0.27 per unit of risk. If you would invest 1,115 in Intech Managed Volatility on September 5, 2024 and sell it today you would earn a total of 66.00 from holding Intech Managed Volatility or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intech Managed Volatility vs. Large Cap E
Performance |
| Timeline |
| Intech Managed Volatility |
| Large Cap E |
Intech Us and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Us and Large Cap
The main advantage of trading using opposite Intech Us and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Us position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap's long position.| Intech Us vs. Large Cap E | Intech Us vs. Large Cap Growth | Intech Us vs. Laudus Large Cap | Intech Us vs. Janus Forty Fund |
| Large Cap vs. Small Cap Equity | Large Cap vs. Gmo Global Equity | Large Cap vs. Nationwide Global Equity | Large Cap vs. Scharf Fund Retail |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |