Correlation Between Intal High and Emerging Markets

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

By analyzing existing cross correlation between Intal High Relative and Emerging Markets Small, you can compare the effects of market volatilities on Intal High and Emerging Markets 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 Intal High with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and Emerging Markets.

Diversification Opportunities for Intal High and Emerging Markets

0.91

Correlation Coefficient

Intal High  Emerging Markets

Almost no diversification

The 3 months correlation between Intal and Emerging is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative and Emerging Markets Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Small and Intal High 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 Intal High Relative are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Small has no effect on the direction of Intal High i.e., Intal High and Emerging Markets go up and down completely randomly.

Pair Corralation between Intal High and Emerging Markets

Assuming the 90 days horizon Intal High is expected to generate 3.5 times less return on investment than Emerging Markets. In addition to that, Intal High is 1.1 times more volatile than Emerging Markets Small. It trades about 0.06 of its total potential returns per unit of risk. Emerging Markets Small is currently generating about 0.21 per unit of volatility. If you would invest  2,361  in Emerging Markets Small on May 3, 2025 and sell it today you would earn a total of  209.00  from holding Emerging Markets Small or generate 8.85% return on investment over 90 days.

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

Intal High Relative  vs.  Emerging Markets Small

Intal High Relative

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intal High Relative are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intal High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Emerging Markets Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Markets Small are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Emerging Markets may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intal High and Emerging Markets

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

The idea behind Intal High Relative and Emerging Markets Small 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.