Correlation Between Intergroup and Transcontinental

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

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

Diversification Opportunities for Intergroup and Transcontinental

0.31

Correlation Coefficient

Intergroup  Transcontinental

Weak diversification

The 3 months correlation between Intergroup and Transcontinental is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and Transcontinental Realty Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcontinental Realty 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 Transcontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcontinental Realty has no effect on the direction of Intergroup i.e., Intergroup and Transcontinental go up and down completely randomly.

Pair Corralation between Intergroup and Transcontinental

Given the investment horizon of 90 days The Intergroup is expected to under-perform the Transcontinental. In addition to that, Intergroup is 1.82 times more volatile than Transcontinental Realty Investors. It trades about -0.02 of its total potential returns per unit of risk. Transcontinental Realty Investors is currently generating about 0.16 per unit of volatility. If you would invest  3,092  in Transcontinental Realty Investors on May 7, 2025 and sell it today you would earn a total of  1,070  from holding Transcontinental Realty Investors or generate 34.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.94%
Values	Daily Returns

The Intergroup  vs.  Transcontinental Realty Invest

Intergroup

Risk-Adjusted Performance

Weakest

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.

Transcontinental Realty

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Transcontinental Realty Investors are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, Transcontinental demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intergroup and Transcontinental

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

The idea behind The Intergroup and Transcontinental Realty Investors 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.