Correlation Between Lead Real and Intergroup
Can any of the company-specific risk be diversified away by investing in both Lead Real and Intergroup 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 Lead Real and Intergroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lead Real Estate and The Intergroup, you can compare the effects of market volatilities on Lead Real and Intergroup 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 Lead Real with a short position of Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lead Real and Intergroup.
Diversification Opportunities for Lead Real and Intergroup
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lead and Intergroup is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lead Real Estate and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and Lead Real 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 Lead Real Estate are associated (or correlated) with Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of Lead Real i.e., Lead Real and Intergroup go up and down completely randomly.
Pair Corralation between Lead Real and Intergroup
Considering the 90-day investment horizon Lead Real Estate is expected to generate 2.19 times more return on investment than Intergroup. However, Lead Real is 2.19 times more volatile than The Intergroup. It trades about 0.04 of its potential returns per unit of risk. The Intergroup is currently generating about -0.06 per unit of risk. If you would invest 151.00 in Lead Real Estate on November 2, 2024 and sell it today you would earn a total of 9.00 from holding Lead Real Estate or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.03% |
| Values | Daily Returns |
Lead Real Estate vs. The Intergroup
Performance |
| Timeline |
| Lead Real Estate |
| Intergroup |
Lead Real and Intergroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lead Real and Intergroup
The main advantage of trading using opposite Lead Real and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lead Real position performs unexpectedly, Intergroup 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 Intergroup will offset losses from the drop in Intergroup's long position.| Lead Real vs. Black Mammoth Metals | Lead Real vs. Mesa Air Group | Lead Real vs. Air Transport Services | Lead Real vs. Evolution Mining |
| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. InterContinental Hotels Group | Intergroup vs. GreenTree Hospitality Group |
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.
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