Correlation Between Managed Account and Inpex Corp
Can any of the company-specific risk be diversified away by investing in both Managed Account and Inpex Corp 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 Managed Account and Inpex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Managed Account Series and Inpex Corp ADR, you can compare the effects of market volatilities on Managed Account and Inpex Corp 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 Managed Account with a short position of Inpex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Managed Account and Inpex Corp.
Diversification Opportunities for Managed Account and Inpex Corp
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Managed and Inpex is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Managed Account Series and Inpex Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpex Corp ADR and Managed Account 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 Managed Account Series are associated (or correlated) with Inpex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpex Corp ADR has no effect on the direction of Managed Account i.e., Managed Account and Inpex Corp go up and down completely randomly.
Pair Corralation between Managed Account and Inpex Corp
Assuming the 90 days horizon Managed Account Series is expected to generate 0.14 times more return on investment than Inpex Corp. However, Managed Account Series is 7.37 times less risky than Inpex Corp. It trades about 0.1 of its potential returns per unit of risk. Inpex Corp ADR is currently generating about -0.02 per unit of risk. If you would invest 835.00 in Managed Account Series on November 4, 2024 and sell it today you would earn a total of 55.00 from holding Managed Account Series or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Managed Account Series vs. Inpex Corp ADR
Performance |
| Timeline |
| Managed Account Series |
| Inpex Corp ADR |
Managed Account and Inpex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Managed Account and Inpex Corp
The main advantage of trading using opposite Managed Account and Inpex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Managed Account position performs unexpectedly, Inpex Corp 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 Inpex Corp will offset losses from the drop in Inpex Corp's long position.| Managed Account vs. Putnam Global Technology | Managed Account vs. Science Technology Fund | Managed Account vs. Fidelity Advisor Technology | Managed Account vs. Pgim Jennison Technology |
| Inpex Corp vs. San Leon Energy | Inpex Corp vs. Enwell Energy plc | Inpex Corp vs. Dno ASA | Inpex Corp vs. Questerre Energy |
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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