Correlation Between Ingress Industrial and CENTRAL RETAIL

Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and CENTRAL RETAIL 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 Ingress Industrial and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ingress Industrial Public and CENTRAL RETAIL P, you can compare the effects of market volatilities on Ingress Industrial and CENTRAL RETAIL 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 Ingress Industrial with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and CENTRAL RETAIL.

Diversification Opportunities for Ingress Industrial and CENTRAL RETAIL

0.02

Correlation Coefficient

Ingress Industrial  CENTRAL RETAIL

Significant diversification

The 3 months correlation between Ingress and CENTRAL is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and Ingress Industrial 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 Ingress Industrial Public are associated (or correlated) with CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and CENTRAL RETAIL go up and down completely randomly.

Pair Corralation between Ingress Industrial and CENTRAL RETAIL

Assuming the 90 days trading horizon Ingress Industrial Public is expected to generate 1.56 times more return on investment than CENTRAL RETAIL. However, Ingress Industrial is 1.56 times more volatile than CENTRAL RETAIL P. It trades about -0.07 of its potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.13 per unit of risk. If you would invest  39.00  in Ingress Industrial Public on September 29, 2024 and sell it today you would lose (4.00) from holding Ingress Industrial Public or give up 10.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ingress Industrial Public  vs.  CENTRAL RETAIL P

Ingress Industrial Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingress Industrial Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

CENTRAL RETAIL P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CENTRAL RETAIL P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Ingress Industrial and CENTRAL RETAIL

The main advantage of trading using opposite Ingress Industrial and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.

The idea behind Ingress Industrial Public and CENTRAL RETAIL P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.