Correlation Between Global Net and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Global Net and Ion Beam 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 Global Net and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and Ion Beam Applications, you can compare the effects of market volatilities on Global Net and Ion Beam 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 Global Net with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Ion Beam.
Diversification Opportunities for Global Net and Ion Beam
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Ion is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Global Net 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 Global Net Lease are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Global Net i.e., Global Net and Ion Beam go up and down completely randomly.
Pair Corralation between Global Net and Ion Beam
Assuming the 90 days trading horizon Global Net Lease is expected to under-perform the Ion Beam. But the stock apears to be less risky and, when comparing its historical volatility, Global Net Lease is 2.07 times less risky than Ion Beam. The stock trades about -0.11 of its potential returns per unit of risk. The Ion Beam Applications is currently generating about 0.12 of returns per unit of risk over similar time horizon. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Net Lease vs. Ion Beam Applications
Performance |
| Timeline |
| Global Net Lease |
| Ion Beam Applications |
Global Net and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Ion Beam
The main advantage of trading using opposite Global Net and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Global Net vs. Waste Management | Global Net vs. PureTech Health plc | Global Net vs. Roper Technologies | Global Net vs. Coor Service Management |
| Ion Beam vs. Uniper SE | Ion Beam vs. Mulberry Group PLC | Ion Beam vs. London Security Plc | Ion Beam vs. Triad Group PLC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |