Correlation Between Ion Beam and Global Net
Can any of the company-specific risk be diversified away by investing in both Ion Beam and Global Net 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 Ion Beam and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Global Net Lease, you can compare the effects of market volatilities on Ion Beam and Global Net 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 Ion Beam with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Global Net.
Diversification Opportunities for Ion Beam and Global Net
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ion and Global is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Ion Beam i.e., Ion Beam and Global Net go up and down completely randomly.
Pair Corralation between Ion Beam and Global Net
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 1.49 times more return on investment than Global Net. However, Ion Beam is 1.49 times more volatile than Global Net Lease. It trades about 0.02 of its potential returns per unit of risk. Global Net Lease is currently generating about -0.14 per unit of risk. If you would invest 1,388 in Ion Beam Applications on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Ion Beam Applications or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Global Net Lease
Performance |
| Timeline |
| Ion Beam Applications |
| Global Net Lease |
Ion Beam and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Global Net
The main advantage of trading using opposite Ion Beam and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, Global Net 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 Net will offset losses from the drop in Global Net's long position.| Ion Beam vs. Neometals | Ion Beam vs. Coor Service Management | Ion Beam vs. Aeorema Communications Plc | Ion Beam vs. JLEN Environmental Assets |
| Global Net vs. Neometals | Global Net vs. Coor Service Management | Global Net vs. Aeorema Communications Plc | Global Net vs. JLEN Environmental Assets |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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