Correlation Between Intergroup and COPT Defense
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 90.32% |
Values | Daily Returns |
The Intergroup vs. COPT Defense Properties
Performance |
Timeline |
Intergroup |
COPT Defense Properties |
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.Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. InterContinental Hotels Group | Intergroup vs. GreenTree Hospitality Group |
COPT Defense vs. Grupo Aeroportuario del | COPT Defense vs. Asure Software | COPT Defense vs. Alaska Air Group | COPT Defense vs. Cebu Air ADR |
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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