Correlation Between International Tower and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both International Tower and Cambridge Capital 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 International Tower and Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Tower Hill and Cambridge Capital Holdings, you can compare the effects of market volatilities on International Tower and Cambridge Capital 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 International Tower with a short position of Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Tower and Cambridge Capital.
Diversification Opportunities for International Tower and Cambridge Capital
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Cambridge is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding International Tower Hill and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital and International Tower 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 International Tower Hill are associated (or correlated) with Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of International Tower i.e., International Tower and Cambridge Capital go up and down completely randomly.
Pair Corralation between International Tower and Cambridge Capital
If you would invest 15.00 in Cambridge Capital Holdings on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Cambridge Capital Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
International Tower Hill vs. Cambridge Capital Holdings
Performance |
| Timeline |
| International Tower Hill |
| Cambridge Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
International Tower and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Tower and Cambridge Capital
The main advantage of trading using opposite International Tower and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Tower position performs unexpectedly, Cambridge Capital 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 Cambridge Capital will offset losses from the drop in Cambridge Capital's long position.| International Tower vs. Vista Gold | International Tower vs. Golden Minerals | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
| Cambridge Capital vs. International Tower Hill | Cambridge Capital vs. Allegiant Gold | Cambridge Capital vs. Austin Gold Corp | Cambridge Capital vs. Angold Resources |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |