Correlation Between Intergroup and COPT Defense

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Can any of the company-specific risk be diversified away by investing in both Intergroup and COPT Defense 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 COPT Defense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Intergroup and COPT Defense Properties, you can compare the effects of market volatilities on Intergroup and COPT Defense 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 COPT Defense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intergroup and COPT Defense.

Diversification Opportunities for Intergroup and COPT Defense

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Intergroup and COPT is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and COPT Defense Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPT Defense Properties 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 COPT Defense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPT Defense Properties has no effect on the direction of Intergroup i.e., Intergroup and COPT Defense go up and down completely randomly.

Pair Corralation between Intergroup and COPT Defense

Given the investment horizon of 90 days The Intergroup is expected to under-perform the COPT Defense. In addition to that, Intergroup is 5.74 times more volatile than COPT Defense Properties. It trades about -0.03 of its total potential returns per unit of risk. COPT Defense Properties is currently generating about 0.07 per unit of volatility. If you would invest  2,627  in COPT Defense Properties on May 2, 2025 and sell it today you would earn a total of  110.00  from holding COPT Defense Properties or generate 4.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy90.32%
ValuesDaily Returns

The Intergroup  vs.  COPT Defense Properties

 Performance 
       Timeline  
Intergroup 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days The Intergroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
COPT Defense Properties 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in COPT Defense Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, COPT Defense is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Intergroup and COPT Defense Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intergroup and COPT Defense

The main advantage of trading using opposite Intergroup and COPT Defense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intergroup position performs unexpectedly, COPT Defense 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 COPT Defense will offset losses from the drop in COPT Defense's long position.
The idea behind The Intergroup and COPT Defense Properties 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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