Correlation Between Investcorp Credit and Medalist Diversified

Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Medalist Diversified 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 Medalist Diversified 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 Medalist Diversified Reit, you can compare the effects of market volatilities on Investcorp Credit and Medalist Diversified 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 Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Medalist Diversified.

Diversification Opportunities for Investcorp Credit and Medalist Diversified

-0.25

Correlation Coefficient

Investcorp Credit  Medalist Diversified

Very good diversification

The 3 months correlation between Investcorp and Medalist is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit 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 Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Medalist Diversified go up and down completely randomly.

Pair Corralation between Investcorp Credit and Medalist Diversified

Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 0.6 times more return on investment than Medalist Diversified. However, Investcorp Credit Management is 1.67 times less risky than Medalist Diversified. It trades about 0.06 of its potential returns per unit of risk. Medalist Diversified Reit is currently generating about 0.01 per unit of risk. If you would invest  267.00  in Investcorp Credit Management on May 5, 2025 and sell it today you would earn a total of  16.00  from holding Investcorp Credit Management or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.13%
Values	Daily Returns

Investcorp Credit Management  vs.  Medalist Diversified Reit

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 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Investcorp Credit may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Medalist Diversified Reit

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medalist Diversified Reit are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Medalist Diversified is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Investcorp Credit and Medalist Diversified

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

The idea behind Investcorp Credit Management and Medalist Diversified Reit 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.