Correlation Between Intergroup and Alexanders

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

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

Diversification Opportunities for Intergroup and Alexanders

-0.6

Correlation Coefficient

Intergroup  Alexanders

Excellent diversification

The 3 months correlation between Intergroup and Alexanders is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and Intergroup 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 The Intergroup are associated (or correlated) with Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of Intergroup i.e., Intergroup and Alexanders go up and down completely randomly.

Pair Corralation between Intergroup and Alexanders

Given the investment horizon of 90 days The Intergroup is expected to generate 1.32 times more return on investment than Alexanders. However, Intergroup is 1.32 times more volatile than Alexanders. It trades about 0.12 of its potential returns per unit of risk. Alexanders is currently generating about -0.13 per unit of risk. If you would invest  1,268  in The Intergroup on January 22, 2025 and sell it today you would earn a total of  72.00  from holding The Intergroup or generate 5.68% return on investment over 90 days.

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

The Intergroup  vs.  Alexanders

Intergroup

Risk-Adjusted Performance

Insignificant

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 may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Alexanders

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alexanders are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Alexanders may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Intergroup and Alexanders

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

The idea behind The Intergroup and Alexanders 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.