Correlation Between COPT Defense and Intergroup

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

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

Diversification Opportunities for COPT Defense and Intergroup

-0.23

Correlation Coefficient

COPT Defense  Intergroup

Very good diversification

The 3 months correlation between COPT and Intergroup is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding COPT Defense Properties and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and COPT Defense 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 COPT Defense Properties 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 COPT Defense i.e., COPT Defense and Intergroup go up and down completely randomly.

Pair Corralation between COPT Defense and Intergroup

Considering the 90-day investment horizon COPT Defense is expected to generate 6.56 times less return on investment than Intergroup. But when comparing it to its historical volatility, COPT Defense Properties is 6.78 times less risky than Intergroup. It trades about 0.04 of its potential returns per unit of risk. The Intergroup is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,206  in The Intergroup on May 18, 2025 and sell it today you would earn a total of  46.00  from holding The Intergroup or generate 3.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

COPT Defense Properties  vs.  The Intergroup

COPT Defense Properties

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in COPT Defense Properties are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, COPT Defense is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Intergroup

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in The Intergroup are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Intergroup reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COPT Defense and Intergroup

The main advantage of trading using opposite COPT Defense and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPT Defense 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 COPT Defense Properties 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.