Correlation Between Income Opportunity and IF Bancorp
Can any of the company-specific risk be diversified away by investing in both Income Opportunity and IF Bancorp 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 Income Opportunity and IF Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Opportunity Realty and IF Bancorp, you can compare the effects of market volatilities on Income Opportunity and IF Bancorp 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 Income Opportunity with a short position of IF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Opportunity and IF Bancorp.
Diversification Opportunities for Income Opportunity and IF Bancorp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Income and IROQ is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Income Opportunity Realty and IF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IF Bancorp and Income Opportunity 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 Income Opportunity Realty are associated (or correlated) with IF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IF Bancorp has no effect on the direction of Income Opportunity i.e., Income Opportunity and IF Bancorp go up and down completely randomly.
Pair Corralation between Income Opportunity and IF Bancorp
Considering the 90-day investment horizon Income Opportunity Realty is expected to under-perform the IF Bancorp. In addition to that, Income Opportunity is 1.65 times more volatile than IF Bancorp. It trades about -0.02 of its total potential returns per unit of risk. IF Bancorp is currently generating about 0.07 per unit of volatility. If you would invest 2,284 in IF Bancorp on December 5, 2024 and sell it today you would earn a total of 97.00 from holding IF Bancorp or generate 4.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.44% |
Values | Daily Returns |
Income Opportunity Realty vs. IF Bancorp
Performance |
Timeline |
Income Opportunity Realty |
IF Bancorp |
Income Opportunity and IF Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Income Opportunity and IF Bancorp
The main advantage of trading using opposite Income Opportunity and IF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Opportunity position performs unexpectedly, IF Bancorp 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 IF Bancorp will offset losses from the drop in IF Bancorp's long position.Income Opportunity vs. IF Bancorp | Income Opportunity vs. ICC Holdings | Income Opportunity vs. Home Federal Bancorp | Income Opportunity vs. Lake Shore Bancorp |
IF Bancorp vs. Home Bancorp | IF Bancorp vs. Commerzbank AG PK | IF Bancorp vs. ConnectOne Bancorp | IF Bancorp vs. Home Federal Bancorp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Fundamental Analysis View fundamental data based on most recent published financial statements |