Correlation Between Sancus Lending and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both Sancus Lending and Innovative Industrial 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 Sancus Lending and Innovative Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Innovative Industrial Properties, you can compare the effects of market volatilities on Sancus Lending and Innovative Industrial 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 Sancus Lending with a short position of Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Innovative Industrial.
Diversification Opportunities for Sancus Lending and Innovative Industrial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sancus and Innovative is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of Sancus Lending i.e., Sancus Lending and Innovative Industrial go up and down completely randomly.
Pair Corralation between Sancus Lending and Innovative Industrial
Assuming the 90 days trading horizon Sancus Lending Group is expected to under-perform the Innovative Industrial. In addition to that, Sancus Lending is 2.42 times more volatile than Innovative Industrial Properties. It trades about -0.07 of its total potential returns per unit of risk. Innovative Industrial Properties is currently generating about -0.05 per unit of volatility. If you would invest 12,035 in Innovative Industrial Properties on September 4, 2024 and sell it today you would lose (1,228) from holding Innovative Industrial Properties or give up 10.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sancus Lending Group vs. Innovative Industrial Properti
Performance |
| Timeline |
| Sancus Lending Group |
| Innovative Industrial |
Sancus Lending and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Innovative Industrial
The main advantage of trading using opposite Sancus Lending and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending position performs unexpectedly, Innovative Industrial 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 Innovative Industrial will offset losses from the drop in Innovative Industrial's long position.| Sancus Lending vs. Innovative Industrial Properties | Sancus Lending vs. Impax Environmental Markets | Sancus Lending vs. Foresight Environmental Infrastructure | Sancus Lending vs. Silvercorp Metals |
| Innovative Industrial vs. Samsung Electronics Co | Innovative Industrial vs. Samsung Electronics Co | Innovative Industrial vs. Hyundai Motor | Innovative Industrial vs. Toyota Motor Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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