Correlation Between Income Financial and Life Banc

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

By analyzing existing cross correlation between Income Financial Trust and Life Banc Split, you can compare the effects of market volatilities on Income Financial and Life Banc 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 Financial with a short position of Life Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Financial and Life Banc.

Diversification Opportunities for Income Financial and Life Banc

0.78

Correlation Coefficient

Income Financial  Life Banc

Poor diversification

The 3 months correlation between Income and Life is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Income Financial Trust and Life Banc Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Banc Split and Income Financial 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 Financial Trust are associated (or correlated) with Life Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Banc Split has no effect on the direction of Income Financial i.e., Income Financial and Life Banc go up and down completely randomly.

Pair Corralation between Income Financial and Life Banc

Assuming the 90 days trading horizon Income Financial is expected to generate 2.61 times less return on investment than Life Banc. In addition to that, Income Financial is 2.74 times more volatile than Life Banc Split. It trades about 0.06 of its total potential returns per unit of risk. Life Banc Split is currently generating about 0.43 per unit of volatility. If you would invest  831.00  in Life Banc Split on April 25, 2025 and sell it today you would earn a total of  147.00  from holding Life Banc Split or generate 17.69% return on investment over 90 days.

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

Income Financial Trust  vs.  Life Banc Split

Income Financial Trust

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Income Financial Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental indicators, Income Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Life Banc Split

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Life Banc Split are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Life Banc displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Income Financial and Life Banc

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

The idea behind Income Financial Trust and Life Banc Split 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.