Correlation Between Hunter Creek and Interactive Brokers

Can any of the company-specific risk be diversified away by investing in both Hunter Creek and Interactive Brokers 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 Hunter Creek and Interactive Brokers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hunter Creek Mining and Interactive Brokers Group, you can compare the effects of market volatilities on Hunter Creek and Interactive Brokers 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 Hunter Creek with a short position of Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Creek and Interactive Brokers.

Diversification Opportunities for Hunter Creek and Interactive Brokers

0.0

Correlation Coefficient

Hunter Creek  Interactive Brokers

Pay attention - limited upside

The 3 months correlation between Hunter and Interactive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Creek Mining and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers and Hunter Creek 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 Hunter Creek Mining are associated (or correlated) with Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of Hunter Creek i.e., Hunter Creek and Interactive Brokers go up and down completely randomly.

Pair Corralation between Hunter Creek and Interactive Brokers

If you would invest  9.80  in Hunter Creek Mining on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Hunter Creek Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Hunter Creek Mining  vs.  Interactive Brokers Group

Hunter Creek Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hunter Creek Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Hunter Creek is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Interactive Brokers

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interactive Brokers Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent forward-looking signals, Interactive Brokers reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hunter Creek and Interactive Brokers

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

The idea behind Hunter Creek Mining and Interactive Brokers Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.