Correlation Between Intouch Holdings and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and US Bancorp 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 Intouch Holdings and US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and US Bancorp, you can compare the effects of market volatilities on Intouch Holdings and US Bancorp 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 Intouch Holdings with a short position of US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and US Bancorp.
Diversification Opportunities for Intouch Holdings and US Bancorp
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intouch and UB5 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and US Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and US Bancorp go up and down completely randomly.
Pair Corralation between Intouch Holdings and US Bancorp
Assuming the 90 days trading horizon Intouch Holdings Public is expected to generate 0.69 times more return on investment than US Bancorp. However, Intouch Holdings Public is 1.46 times less risky than US Bancorp. It trades about 0.06 of its potential returns per unit of risk. US Bancorp is currently generating about 0.02 per unit of risk. If you would invest 186.00 in Intouch Holdings Public on November 19, 2024 and sell it today you would earn a total of 82.00 from holding Intouch Holdings Public or generate 44.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. US Bancorp
Performance |
| Timeline |
| Intouch Holdings Public |
| US Bancorp |
Intouch Holdings and US Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and US Bancorp
The main advantage of trading using opposite Intouch Holdings and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.| Intouch Holdings vs. TELE2 AB UNSPADR12 | Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PLDT Inc | Intouch Holdings vs. Sino Land |
| US Bancorp vs. Sims Metal Management | US Bancorp vs. COLUMBIA SPORTSWEAR | US Bancorp vs. JAPAN TOBACCO UNSPADR12 | US Bancorp vs. Jupiter Fund Management |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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