Correlation Between Integrated Rail and Global Acquisitions

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

Diversification Opportunities for Integrated Rail and Global Acquisitions

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Integrated and Global is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Rail and and Global Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Acquisitions and Integrated Rail 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 Integrated Rail and are associated (or correlated) with Global Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Acquisitions has no effect on the direction of Integrated Rail i.e., Integrated Rail and Global Acquisitions go up and down completely randomly.

Pair Corralation between Integrated Rail and Global Acquisitions

Given the investment horizon of 90 days Integrated Rail and is expected to under-perform the Global Acquisitions. In addition to that, Integrated Rail is 1.72 times more volatile than Global Acquisitions. It trades about -0.05 of its total potential returns per unit of risk. Global Acquisitions is currently generating about -0.02 per unit of volatility. If you would invest  677.00  in Global Acquisitions on August 17, 2025 and sell it today you would lose (77.00) from holding Global Acquisitions or give up 11.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Integrated Rail and  vs.  Global Acquisitions

 Performance 
       Timeline  
Integrated Rail 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Integrated Rail and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Global Acquisitions 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Global Acquisitions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Global Acquisitions is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Integrated Rail and Global Acquisitions Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Integrated Rail and Global Acquisitions

The main advantage of trading using opposite Integrated Rail and Global Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Rail position performs unexpectedly, Global Acquisitions 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 Global Acquisitions will offset losses from the drop in Global Acquisitions' long position.
The idea behind Integrated Rail and and Global Acquisitions 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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