Correlation Between Intergroup and Lesico
Can any of the company-specific risk be diversified away by investing in both Intergroup and Lesico 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 Intergroup and Lesico into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Intergroup and Lesico, you can compare the effects of market volatilities on Intergroup and Lesico 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 Intergroup with a short position of Lesico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intergroup and Lesico.
Diversification Opportunities for Intergroup and Lesico
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intergroup and Lesico is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and Lesico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesico and Intergroup 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 The Intergroup are associated (or correlated) with Lesico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesico has no effect on the direction of Intergroup i.e., Intergroup and Lesico go up and down completely randomly.
Pair Corralation between Intergroup and Lesico
Given the investment horizon of 90 days The Intergroup is expected to under-perform the Lesico. In addition to that, Intergroup is 1.94 times more volatile than Lesico. It trades about -0.04 of its total potential returns per unit of risk. Lesico is currently generating about 0.03 per unit of volatility. If you would invest 31,484 in Lesico on January 24, 2024 and sell it today you would earn a total of 1,726 from holding Lesico or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.5% |
| Values | Daily Returns |
The Intergroup vs. Lesico
Performance |
| Timeline |
| Intergroup |
| Lesico |
Intergroup and Lesico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intergroup and Lesico
The main advantage of trading using opposite Intergroup and Lesico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intergroup position performs unexpectedly, Lesico 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 Lesico will offset losses from the drop in Lesico's long position.| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |