Correlation Between Ingenia Communities and Home Consortium

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

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

Diversification Opportunities for Ingenia Communities and Home Consortium

-0.24

Correlation Coefficient

Ingenia Communities  Home Consortium

Very good diversification

The 3 months correlation between Ingenia and Home is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ingenia Communities Group and Home Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Consortium and Ingenia Communities 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 Ingenia Communities Group are associated (or correlated) with Home Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Consortium has no effect on the direction of Ingenia Communities i.e., Ingenia Communities and Home Consortium go up and down completely randomly.

Pair Corralation between Ingenia Communities and Home Consortium

Assuming the 90 days trading horizon Ingenia Communities Group is expected to generate 0.9 times more return on investment than Home Consortium. However, Ingenia Communities Group is 1.12 times less risky than Home Consortium. It trades about 0.12 of its potential returns per unit of risk. Home Consortium is currently generating about -0.23 per unit of risk. If you would invest  465.00  in Ingenia Communities Group on December 29, 2024 and sell it today you would earn a total of  85.00  from holding Ingenia Communities Group or generate 18.28% return on investment over 90 days.

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

Ingenia Communities Group  vs.  Home Consortium

Ingenia Communities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ingenia Communities Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ingenia Communities unveiled solid returns over the last few months and may actually be approaching a breakup point.

Home Consortium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Home Consortium has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's 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 Ingenia Communities and Home Consortium

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

The idea behind Ingenia Communities Group and Home Consortium 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..