Correlation Between Intrusion and Graham

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Can any of the company-specific risk be diversified away by investing in both Intrusion and Graham 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 Intrusion and Graham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrusion and Graham Holdings 575, you can compare the effects of market volatilities on Intrusion and Graham 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 Intrusion with a short position of Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrusion and Graham.

Diversification Opportunities for Intrusion and Graham

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Intrusion and Graham is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intrusion and Graham Holdings 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 575 and Intrusion 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 Intrusion are associated (or correlated) with Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings 575 has no effect on the direction of Intrusion i.e., Intrusion and Graham go up and down completely randomly.

Pair Corralation between Intrusion and Graham

Given the investment horizon of 90 days Intrusion is expected to generate 178.83 times more return on investment than Graham. However, Intrusion is 178.83 times more volatile than Graham Holdings 575. It trades about 0.12 of its potential returns per unit of risk. Graham Holdings 575 is currently generating about -0.03 per unit of risk. If you would invest  84.00  in Intrusion on October 10, 2024 and sell it today you would earn a total of  116.00  from holding Intrusion or generate 138.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy58.06%
ValuesDaily Returns

Intrusion  vs.  Graham Holdings 575

 Performance 
       Timeline  
Intrusion 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.
Graham Holdings 575 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Graham Holdings 575 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Graham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Intrusion and Graham Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intrusion and Graham

The main advantage of trading using opposite Intrusion and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrusion position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.
The idea behind Intrusion and Graham Holdings 575 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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