Correlation Between Intuitive Investments and 70GD

Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and 70GD 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 Intuitive Investments and 70GD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intuitive Investments Group and 70GD, you can compare the effects of market volatilities on Intuitive Investments and 70GD 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 Intuitive Investments with a short position of 70GD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and 70GD.

Diversification Opportunities for Intuitive Investments and 70GD

-0.46

Correlation Coefficient

Intuitive Investments  70GD

Very good diversification

The 3 months correlation between Intuitive and 70GD is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and 70GD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 70GD and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with 70GD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 70GD has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and 70GD go up and down completely randomly.

Pair Corralation between Intuitive Investments and 70GD

Assuming the 90 days trading horizon Intuitive Investments Group is expected to under-perform the 70GD. In addition to that, Intuitive Investments is 4.35 times more volatile than 70GD. It trades about -0.02 of its total potential returns per unit of risk. 70GD is currently generating about 0.13 per unit of volatility. If you would invest  68.00  in 70GD on October 12, 2024 and sell it today you would earn a total of  3.00  from holding 70GD or generate 4.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Intuitive Investments Group  vs.  70GD

Intuitive Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intuitive Investments Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Intuitive Investments is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

70GD

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 70GD are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, 70GD is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intuitive Investments and 70GD

The main advantage of trading using opposite Intuitive Investments and 70GD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, 70GD 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 70GD will offset losses from the drop in 70GD's long position.

The idea behind Intuitive Investments Group and 70GD 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.