Correlation Between International Consolidated and Innventure,

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

By analyzing existing cross correlation between International Consolidated Airlines and Innventure,, you can compare the effects of market volatilities on International Consolidated and Innventure, 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 International Consolidated with a short position of Innventure,. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Innventure,.

Diversification Opportunities for International Consolidated and Innventure,

0.49

Correlation Coefficient

International Consolidated  Innventure,

Very weak diversification

The 3 months correlation between International and Innventure, is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and Innventure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure, and International Consolidated 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 International Consolidated Airlines are associated (or correlated) with Innventure,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure, has no effect on the direction of International Consolidated i.e., International Consolidated and Innventure, go up and down completely randomly.

Pair Corralation between International Consolidated and Innventure,

Assuming the 90 days horizon International Consolidated Airlines is expected to generate 0.78 times more return on investment than Innventure,. However, International Consolidated Airlines is 1.27 times less risky than Innventure,. It trades about 0.08 of its potential returns per unit of risk. Innventure, is currently generating about 0.02 per unit of risk. If you would invest  395.00  in International Consolidated Airlines on October 11, 2024 and sell it today you would earn a total of  365.00  from holding International Consolidated Airlines or generate 92.41% return on investment over 90 days.

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

International Consolidated Air  vs.  Innventure,

International Consolidated

Risk-Adjusted Performance

32 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in International Consolidated Airlines are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, International Consolidated showed solid returns over the last few months and may actually be approaching a breakup point.

Innventure,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Innventure, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Innventure, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with International Consolidated and Innventure,

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

The idea behind International Consolidated Airlines and Innventure, 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.