Correlation Between CKX Lands and Intergroup

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

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

Diversification Opportunities for CKX Lands and Intergroup

-0.31

Correlation Coefficient

CKX Lands  Intergroup

Very good diversification

The 3 months correlation between CKX and Intergroup is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and CKX Lands 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 CKX Lands are associated (or correlated) with Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of CKX Lands i.e., CKX Lands and Intergroup go up and down completely randomly.

Pair Corralation between CKX Lands and Intergroup

Considering the 90-day investment horizon CKX Lands is expected to generate 0.41 times more return on investment than Intergroup. However, CKX Lands is 2.45 times less risky than Intergroup. It trades about 0.1 of its potential returns per unit of risk. The Intergroup is currently generating about -0.03 per unit of risk. If you would invest  954.00  in CKX Lands on February 3, 2024 and sell it today you would earn a total of  424.00  from holding CKX Lands or generate 44.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.59%
Values	Daily Returns

CKX Lands  vs.  The Intergroup

CKX Lands

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CKX Lands are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward-looking signals, CKX Lands is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Intergroup

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Intergroup are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Intergroup is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CKX Lands and Intergroup

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

The idea behind CKX Lands and The Intergroup 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.