Correlation Between Interactive Brokers and Creek Road

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

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

Diversification Opportunities for Interactive Brokers and Creek Road

0.0

Correlation Coefficient

Interactive Brokers  Creek Road

Pay attention - limited upside

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

Pair Corralation between Interactive Brokers and Creek Road

If you would invest  12,223  in Interactive Brokers Group on December 5, 2024 and sell it today you would earn a total of  7,446  from holding Interactive Brokers Group or generate 60.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Interactive Brokers Group  vs.  Creek Road Miners

Interactive Brokers

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Interactive Brokers Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward-looking signals, Interactive Brokers may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Creek Road Miners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Creek Road Miners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Creek Road is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Interactive Brokers and Creek Road

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

The idea behind Interactive Brokers Group and Creek Road Miners 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .