Correlation Between Core Main and Inter Co
Can any of the company-specific risk be diversified away by investing in both Core Main and Inter Co 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 Core Main and Inter Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Main and Inter Co Class, you can compare the effects of market volatilities on Core Main and Inter Co 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 Core Main with a short position of Inter Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Main and Inter Co.
Diversification Opportunities for Core Main and Inter Co
Excellent diversification
The 3 months correlation between Core and Inter is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Core Main and Inter Co Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Co Class and Core Main 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 Core Main are associated (or correlated) with Inter Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Co Class has no effect on the direction of Core Main i.e., Core Main and Inter Co go up and down completely randomly.
Pair Corralation between Core Main and Inter Co
Considering the 90-day investment horizon Core Main is expected to generate 2.13 times less return on investment than Inter Co. But when comparing it to its historical volatility, Core Main is 1.07 times less risky than Inter Co. It trades about 0.02 of its potential returns per unit of risk. Inter Co Class is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Inter Co Class on July 23, 2025 and sell it today you would earn a total of 173.00 from holding Inter Co Class or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Main vs. Inter Co Class
Performance |
| Timeline |
| Core Main |
| Inter Co Class |
Core Main and Inter Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Main and Inter Co
The main advantage of trading using opposite Core Main and Inter Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Main position performs unexpectedly, Inter Co 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 Inter Co will offset losses from the drop in Inter Co's long position.| Core Main vs. Applied Industrial Technologies | Core Main vs. WESCO International | Core Main vs. Smith AO | Core Main vs. Pool Corporation |
| Inter Co vs. MT Bank | Inter Co vs. United Community Banks, | Inter Co vs. The Bancorp | Inter Co vs. Cadence Bancorp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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