Correlation Between Intercont Limited and Golden Ocean

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

By analyzing existing cross correlation between Intercont Limited Ordinary and Golden Ocean Group, you can compare the effects of market volatilities on Intercont Limited and Golden Ocean 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 Intercont Limited with a short position of Golden Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercont Limited and Golden Ocean.

Diversification Opportunities for Intercont Limited and Golden Ocean

-0.09

Correlation Coefficient

Intercont Limited  Golden Ocean

Good diversification

The 3 months correlation between Intercont and Golden is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Intercont Limited Ordinary and Golden Ocean Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ocean Group and Intercont Limited 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 Intercont Limited Ordinary are associated (or correlated) with Golden Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ocean Group has no effect on the direction of Intercont Limited i.e., Intercont Limited and Golden Ocean go up and down completely randomly.

Pair Corralation between Intercont Limited and Golden Ocean

Considering the 90-day investment horizon Intercont Limited Ordinary is expected to generate 3.83 times more return on investment than Golden Ocean. However, Intercont Limited is 3.83 times more volatile than Golden Ocean Group. It trades about 0.02 of its potential returns per unit of risk. Golden Ocean Group is currently generating about 0.06 per unit of risk. If you would invest  400.00  in Intercont Limited Ordinary on May 4, 2025 and sell it today you would lose (38.00) from holding Intercont Limited Ordinary or give up 9.5% of portfolio value over 90 days.

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

Intercont Limited Ordinary  vs.  Golden Ocean Group

Intercont Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intercont Limited Ordinary are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Intercont Limited may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Golden Ocean Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Ocean Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, Golden Ocean may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intercont Limited and Golden Ocean

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

The idea behind Intercont Limited Ordinary and Golden Ocean Group 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.