Correlation Between Balchem and I Trax
Can any of the company-specific risk be diversified away by investing in both Balchem and I Trax 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 Balchem and I Trax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balchem and I Trax Inc, you can compare the effects of market volatilities on Balchem and I Trax 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 Balchem with a short position of I Trax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balchem and I Trax.
Diversification Opportunities for Balchem and I Trax
Pay attention - limited upside
The 3 months correlation between Balchem and DMX_old is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Balchem and I Trax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Trax Inc and Balchem 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 Balchem are associated (or correlated) with I Trax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Trax Inc has no effect on the direction of Balchem i.e., Balchem and I Trax go up and down completely randomly.
Pair Corralation between Balchem and I Trax
If you would invest (100.00) in I Trax Inc on October 25, 2024 and sell it today you would earn a total of 100.00 from holding I Trax Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Balchem vs. I Trax Inc
Performance |
| Timeline |
| Balchem |
| I Trax Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Balchem and I Trax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balchem and I Trax
The main advantage of trading using opposite Balchem and I Trax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balchem position performs unexpectedly, I Trax 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 I Trax will offset losses from the drop in I Trax's long position.| Balchem vs. Sensient Technologies | Balchem vs. Innospec | Balchem vs. Minerals Technologies | Balchem vs. Oil Dri |
| I Trax vs. Custom Truck One | I Trax vs. Dave Busters Entertainment | I Trax vs. Nexstar Broadcasting Group | I Trax vs. Academy Sports Outdoors |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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