Correlation Between Intech Us and Henderson European
Can any of the company-specific risk be diversified away by investing in both Intech Us and Henderson European 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 Henderson European 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 Henderson European Focus, you can compare the effects of market volatilities on Intech Us and Henderson European 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 Henderson European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Us and Henderson European.
Diversification Opportunities for Intech Us and Henderson European
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intech and HENDERSON is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intech Managed Volatility and Henderson European Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson European Focus 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 Henderson European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson European Focus has no effect on the direction of Intech Us i.e., Intech Us and Henderson European go up and down completely randomly.
Pair Corralation between Intech Us and Henderson European
Assuming the 90 days horizon Intech Managed Volatility is expected to generate 0.77 times more return on investment than Henderson European. However, Intech Managed Volatility is 1.31 times less risky than Henderson European. It trades about 0.16 of its potential returns per unit of risk. Henderson European Focus is currently generating about -0.14 per unit of risk. If you would invest 1,168 in Intech Managed Volatility on August 29, 2024 and sell it today you would earn a total of 85.00 from holding Intech Managed Volatility or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intech Managed Volatility vs. Henderson European Focus
Performance |
| Timeline |
| Intech Managed Volatility |
| Henderson European Focus |
Intech Us and Henderson European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Us and Henderson European
The main advantage of trading using opposite Intech Us and Henderson European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Us position performs unexpectedly, Henderson European 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 Henderson European will offset losses from the drop in Henderson European's long position.| Intech Us vs. Vanguard Total Stock | Intech Us vs. Vanguard 500 Index | Intech Us vs. Vanguard Total Stock | Intech Us vs. Vanguard Total Stock |
| Henderson European vs. Doubleline Shiller Enhanced | Henderson European vs. Doubleline Strategic Modity | Henderson European vs. Barclays ETN Shiller | Henderson European vs. Aquagold International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |