Correlation Between Intrepid Capital and Ips Strategic

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

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

Diversification Opportunities for Intrepid Capital and Ips Strategic

0.78

Correlation Coefficient

Intrepid Capital  Ips Strategic

Poor diversification

The 3 months correlation between Intrepid and Ips is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Capital Fund and Ips Strategic Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ips Strategic Capital and Intrepid Capital 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 Intrepid Capital Fund are associated (or correlated) with Ips Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ips Strategic Capital has no effect on the direction of Intrepid Capital i.e., Intrepid Capital and Ips Strategic go up and down completely randomly.

Pair Corralation between Intrepid Capital and Ips Strategic

Assuming the 90 days horizon Intrepid Capital is expected to generate 1.33 times less return on investment than Ips Strategic. In addition to that, Intrepid Capital is 1.06 times more volatile than Ips Strategic Capital. It trades about 0.15 of its total potential returns per unit of risk. Ips Strategic Capital is currently generating about 0.22 per unit of volatility. If you would invest  1,066  in Ips Strategic Capital on May 24, 2025 and sell it today you would earn a total of  65.00  from holding Ips Strategic Capital or generate 6.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Intrepid Capital Fund  vs.  Ips Strategic Capital

Intrepid Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intrepid Capital Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intrepid Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ips Strategic Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ips Strategic Capital are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ips Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intrepid Capital and Ips Strategic

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

The idea behind Intrepid Capital Fund and Ips Strategic Capital 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 Global Correlations module to find global opportunities by holding instruments from different markets.