Correlation Between J W and Intergroup
Can any of the company-specific risk be diversified away by investing in both J W 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 J W and Intergroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and The Intergroup, you can compare the effects of market volatilities on J W 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 J W with a short position of Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Intergroup.
Diversification Opportunities for J W and Intergroup
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MAYS and Intergroup is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and J W 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 J W Mays 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 J W i.e., J W and Intergroup go up and down completely randomly.
Pair Corralation between J W and Intergroup
Given the investment horizon of 90 days J W Mays is expected to under-perform the Intergroup. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 1.42 times less risky than Intergroup. The stock trades about -0.38 of its potential returns per unit of risk. The The Intergroup is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,381 in The Intergroup on August 24, 2024 and sell it today you would earn a total of 17.00 from holding The Intergroup or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
J W Mays vs. The Intergroup
Performance |
| Timeline |
| J W Mays |
| Intergroup |
J W and Intergroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Intergroup
The main advantage of trading using opposite J W and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W 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.| J W vs. New England Realty | J W vs. Marcus Millichap | J W vs. FirstService Corp | J W vs. Maui Land Pineapple |
| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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