Correlation Between Together Startup and Intercure

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

By analyzing existing cross correlation between Together Startup Network and Intercure, you can compare the effects of market volatilities on Together Startup and Intercure 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 Together Startup with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Together Startup and Intercure.

Diversification Opportunities for Together Startup and Intercure

-0.5

Correlation Coefficient

Together Startup  Intercure

Very good diversification

The 3 months correlation between Together and Intercure is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Together Startup Network and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Together Startup 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 Together Startup Network are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Together Startup i.e., Together Startup and Intercure go up and down completely randomly.

Pair Corralation between Together Startup and Intercure

Assuming the 90 days trading horizon Together Startup Network is expected to generate 2.2 times more return on investment than Intercure. However, Together Startup is 2.2 times more volatile than Intercure. It trades about 0.07 of its potential returns per unit of risk. Intercure is currently generating about -0.24 per unit of risk. If you would invest  38,000  in Together Startup Network on September 13, 2024 and sell it today you would earn a total of  5,470  from holding Together Startup Network or generate 14.39% return on investment over 90 days.

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

Together Startup Network  vs.  Intercure

Together Startup Network

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Together Startup Network are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Together Startup sustained solid returns over the last few months and may actually be approaching a breakup point.

Intercure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intercure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Together Startup and Intercure

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

The idea behind Together Startup Network and Intercure 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.