Correlation Between Alexanders and Intergroup

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

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

Diversification Opportunities for Alexanders and Intergroup

-0.61

Correlation Coefficient

Alexanders  Intergroup

Excellent diversification

The 3 months correlation between Alexanders and Intergroup is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Alexanders and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and Alexanders 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 Alexanders 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 Alexanders i.e., Alexanders and Intergroup go up and down completely randomly.

Pair Corralation between Alexanders and Intergroup

Considering the 90-day investment horizon Alexanders is expected to generate 0.23 times more return on investment than Intergroup. However, Alexanders is 4.33 times less risky than Intergroup. It trades about 0.29 of its potential returns per unit of risk. The Intergroup is currently generating about -0.02 per unit of risk. If you would invest  20,205  in Alexanders on April 30, 2025 and sell it today you would earn a total of  5,367  from holding Alexanders or generate 26.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.44%
Values	Daily Returns

Alexanders  vs.  The Intergroup

Alexanders

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alexanders are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Alexanders showed solid returns over the last few months and may actually be approaching a breakup point.

Intergroup

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Intergroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Alexanders and Intergroup

The main advantage of trading using opposite Alexanders and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexanders 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 Alexanders 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..