Correlation Between Ion Beam and CAP LEASE
Can any of the company-specific risk be diversified away by investing in both Ion Beam and CAP LEASE 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 CAP LEASE 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 CAP LEASE AVIATION, you can compare the effects of market volatilities on Ion Beam and CAP LEASE 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 CAP LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and CAP LEASE.
Diversification Opportunities for Ion Beam and CAP LEASE
Very good diversification
The 3 months correlation between Ion and CAP is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and CAP LEASE AVIATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP LEASE AVIATION 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 CAP LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP LEASE AVIATION has no effect on the direction of Ion Beam i.e., Ion Beam and CAP LEASE go up and down completely randomly.
Pair Corralation between Ion Beam and CAP LEASE
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 1.32 times more return on investment than CAP LEASE. However, Ion Beam is 1.32 times more volatile than CAP LEASE AVIATION. It trades about 0.12 of its potential returns per unit of risk. CAP LEASE AVIATION is currently generating about -0.21 per unit of risk. If you would invest 1,120 in Ion Beam Applications on September 2, 2024 and sell it today you would earn a total of 276.00 from holding Ion Beam Applications or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. CAP LEASE AVIATION
Performance |
| Timeline |
| Ion Beam Applications |
| CAP LEASE AVIATION |
Ion Beam and CAP LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and CAP LEASE
The main advantage of trading using opposite Ion Beam and CAP LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, CAP LEASE 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 CAP LEASE will offset losses from the drop in CAP LEASE's long position.| Ion Beam vs. Uniper SE | Ion Beam vs. Mulberry Group PLC | Ion Beam vs. London Security Plc | Ion Beam vs. Triad Group PLC |
| CAP LEASE vs. Global Net Lease | CAP LEASE vs. Neometals | CAP LEASE vs. Jacquet Metal Service | CAP LEASE vs. GreenX Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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