Correlation Between Inbar Group and Target

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Can any of the company-specific risk be diversified away by investing in both Inbar Group and Target 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 Inbar Group and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inbar Group Finance and Target, you can compare the effects of market volatilities on Inbar Group and Target 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 Inbar Group with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inbar Group and Target.

Diversification Opportunities for Inbar Group and Target

-0.25
  Correlation Coefficient

Very good diversification

The 3 months correlation between Inbar and Target is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Inbar Group Finance and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Inbar Group 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 Inbar Group Finance are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Inbar Group i.e., Inbar Group and Target go up and down completely randomly.

Pair Corralation between Inbar Group and Target

Assuming the 90 days trading horizon Inbar Group Finance is expected to generate 20.83 times more return on investment than Target. However, Inbar Group is 20.83 times more volatile than Target. It trades about 0.04 of its potential returns per unit of risk. Target is currently generating about 0.0 per unit of risk. If you would invest  25,970  in Inbar Group Finance on December 30, 2023 and sell it today you would earn a total of  16,190  from holding Inbar Group Finance or generate 62.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy78.95%
ValuesDaily Returns

Inbar Group Finance  vs.  Target

 Performance 
       Timeline  
Inbar Group Finance 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Inbar Group Finance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Target 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Target are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Target unveiled solid returns over the last few months and may actually be approaching a breakup point.

Inbar Group and Target Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Inbar Group and Target

The main advantage of trading using opposite Inbar Group and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inbar Group position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.
The idea behind Inbar Group Finance and Target 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.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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