Correlation Between NYSE Composite and Intelligent Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Intelligent Group 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 NYSE Composite and Intelligent Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Intelligent Group Limited, you can compare the effects of market volatilities on NYSE Composite and Intelligent Group 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 NYSE Composite with a short position of Intelligent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Intelligent Group.
Diversification Opportunities for NYSE Composite and Intelligent Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Intelligent is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Intelligent Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Group and NYSE Composite 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 NYSE Composite are associated (or correlated) with Intelligent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and Intelligent Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Intelligent Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.11 times more return on investment than Intelligent Group. However, NYSE Composite is 8.9 times less risky than Intelligent Group. It trades about 0.14 of its potential returns per unit of risk. Intelligent Group Limited is currently generating about -0.09 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 71.77% |
| Values | Daily Returns |
NYSE Composite vs. Intelligent Group Limited
Performance |
| Timeline |
NYSE Composite and Intelligent Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Intelligent Group Limited
Pair trading matchups for Intelligent Group
Pair Trading with NYSE Composite and Intelligent Group
The main advantage of trading using opposite NYSE Composite and Intelligent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Intelligent Group 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 Intelligent Group will offset losses from the drop in Intelligent Group's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Intelligent Group vs. Mirriad Advertising plc | Intelligent Group vs. INEO Tech Corp | Intelligent Group vs. Kidoz Inc | Intelligent Group vs. Marchex |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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