Correlation Between Investcorp Credit and Presidio Property

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

By analyzing existing cross correlation between Investcorp Credit Management and Presidio Property Trust, you can compare the effects of market volatilities on Investcorp Credit and Presidio Property 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 Investcorp Credit with a short position of Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Presidio Property.

Diversification Opportunities for Investcorp Credit and Presidio Property

-0.65

Correlation Coefficient

Investcorp Credit  Presidio Property

Excellent diversification

The 3 months correlation between Investcorp and Presidio is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust and Investcorp Credit 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 Investcorp Credit Management are associated (or correlated) with Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Presidio Property go up and down completely randomly.

Pair Corralation between Investcorp Credit and Presidio Property

Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 0.23 times more return on investment than Presidio Property. However, Investcorp Credit Management is 4.31 times less risky than Presidio Property. It trades about 0.12 of its potential returns per unit of risk. Presidio Property Trust is currently generating about -0.1 per unit of risk. If you would invest  303.00  in Investcorp Credit Management on December 30, 2024 and sell it today you would earn a total of  21.00  from holding Investcorp Credit Management or generate 6.93% return on investment over 90 days.

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

Investcorp Credit Management  vs.  Presidio Property Trust

Investcorp Credit

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Investcorp Credit Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Investcorp Credit may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Presidio Property Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Presidio Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Investcorp Credit and Presidio Property

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

The idea behind Investcorp Credit Management and Presidio Property Trust 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.