Correlation Between Full Truck and Intapp
Can any of the company-specific risk be diversified away by investing in both Full Truck and Intapp 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 Full Truck and Intapp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full Truck Alliance and Intapp Inc, you can compare the effects of market volatilities on Full Truck and Intapp 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 Full Truck with a short position of Intapp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full Truck and Intapp.
Diversification Opportunities for Full Truck and Intapp
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Full and Intapp is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and Intapp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intapp Inc and Full Truck 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 Full Truck Alliance are associated (or correlated) with Intapp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intapp Inc has no effect on the direction of Full Truck i.e., Full Truck and Intapp go up and down completely randomly.
Pair Corralation between Full Truck and Intapp
Considering the 90-day investment horizon Full Truck is expected to generate 2.45 times less return on investment than Intapp. But when comparing it to its historical volatility, Full Truck Alliance is 1.53 times less risky than Intapp. It trades about 0.12 of its potential returns per unit of risk. Intapp Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 6,463 in Intapp Inc on November 3, 2024 and sell it today you would earn a total of 666.00 from holding Intapp Inc or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Full Truck Alliance vs. Intapp Inc
Performance |
| Timeline |
| Full Truck Alliance |
| Intapp Inc |
Full Truck and Intapp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full Truck and Intapp
The main advantage of trading using opposite Full Truck and Intapp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck position performs unexpectedly, Intapp 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 Intapp will offset losses from the drop in Intapp's long position.| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. Bm Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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