Correlation Between Investcorp Credit and Acadian Asset

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

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

Diversification Opportunities for Investcorp Credit and Acadian Asset

0.42

Correlation Coefficient

Investcorp Credit  Acadian Asset

Very weak diversification

The 3 months correlation between Investcorp and Acadian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Acadian Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadian Asset Management and Investcorp Credit 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 Investcorp Credit Management are associated (or correlated) with Acadian Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadian Asset Management has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Acadian Asset go up and down completely randomly.

Pair Corralation between Investcorp Credit and Acadian Asset

Given the investment horizon of 90 days Investcorp Credit is expected to generate 8.71 times less return on investment than Acadian Asset. In addition to that, Investcorp Credit is 1.12 times more volatile than Acadian Asset Management. It trades about 0.03 of its total potential returns per unit of risk. Acadian Asset Management is currently generating about 0.34 per unit of volatility. If you would invest  2,893  in Acadian Asset Management on May 6, 2025 and sell it today you would earn a total of  1,169  from holding Acadian Asset Management or generate 40.41% return on investment over 90 days.

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

Investcorp Credit Management  vs.  Acadian Asset Management

Investcorp Credit

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Investcorp Credit Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, Investcorp Credit is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Acadian Asset Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Acadian Asset Management are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, Acadian Asset demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Investcorp Credit and Acadian Asset

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

The idea behind Investcorp Credit Management and Acadian Asset Management 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 Commodity Directory module to find actively traded commodities issued by global exchanges.