Correlation Between TILT Holdings and INC Research
Can any of the company-specific risk be diversified away by investing in both TILT Holdings and INC Research 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 TILT Holdings and INC Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TILT Holdings and INC Research Holdings, you can compare the effects of market volatilities on TILT Holdings and INC Research 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 TILT Holdings with a short position of INC Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of TILT Holdings and INC Research.
Diversification Opportunities for TILT Holdings and INC Research
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TILT and INC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding TILT Holdings and INC Research Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INC Research Holdings and TILT 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 TILT Holdings are associated (or correlated) with INC Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INC Research Holdings has no effect on the direction of TILT Holdings i.e., TILT Holdings and INC Research go up and down completely randomly.
Pair Corralation between TILT Holdings and INC Research
Assuming the 90 days horizon TILT Holdings is expected to under-perform the INC Research. In addition to that, TILT Holdings is 1.97 times more volatile than INC Research Holdings. It trades about -0.02 of its total potential returns per unit of risk. INC Research Holdings is currently generating about 0.03 per unit of volatility. If you would invest 124.00 in INC Research Holdings on August 24, 2024 and sell it today you would earn a total of 10.00 from holding INC Research Holdings or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TILT Holdings vs. INC Research Holdings
Performance |
| Timeline |
| TILT Holdings |
| INC Research Holdings |
TILT Holdings and INC Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TILT Holdings and INC Research
The main advantage of trading using opposite TILT Holdings and INC Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TILT Holdings position performs unexpectedly, INC Research 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 INC Research will offset losses from the drop in INC Research's long position.| TILT Holdings vs. Green Cures Botanical | TILT Holdings vs. Rimrock Gold Corp | TILT Holdings vs. Galexxy Holdings | TILT Holdings vs. Indoor Harvest Corp |
| INC Research vs. AYR Strategies Class | INC Research vs. Verano Holdings Corp | INC Research vs. TILT Holdings | INC Research vs. Lowell Farms |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |