Correlation Between International Consolidated and Panasonic Corp
Can any of the company-specific risk be diversified away by investing in both International Consolidated and Panasonic Corp 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 International Consolidated and Panasonic Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and Panasonic Corp, you can compare the effects of market volatilities on International Consolidated and Panasonic Corp 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 International Consolidated with a short position of Panasonic Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Panasonic Corp.
Diversification Opportunities for International Consolidated and Panasonic Corp
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between International and Panasonic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and Panasonic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panasonic Corp and International Consolidated 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 International Consolidated Airlines are associated (or correlated) with Panasonic Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panasonic Corp has no effect on the direction of International Consolidated i.e., International Consolidated and Panasonic Corp go up and down completely randomly.
Pair Corralation between International Consolidated and Panasonic Corp
Assuming the 90 days trading horizon International Consolidated Airlines is expected to generate 0.59 times more return on investment than Panasonic Corp. However, International Consolidated Airlines is 1.68 times less risky than Panasonic Corp. It trades about 0.58 of its potential returns per unit of risk. Panasonic Corp is currently generating about 0.23 per unit of risk. If you would invest 23,960 in International Consolidated Airlines on September 12, 2024 and sell it today you would earn a total of 4,840 from holding International Consolidated Airlines or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 47.83% |
| Values | Daily Returns |
International Consolidated Air vs. Panasonic Corp
Performance |
| Timeline |
| International Consolidated |
| Panasonic Corp |
International Consolidated and Panasonic Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Panasonic Corp
The main advantage of trading using opposite International Consolidated and Panasonic Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, Panasonic Corp 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 Panasonic Corp will offset losses from the drop in Panasonic Corp's long position.| International Consolidated vs. Hong Kong Land | International Consolidated vs. Neometals | International Consolidated vs. Coor Service Management | International Consolidated vs. Fidelity Sustainable USD |
| Panasonic Corp vs. Naturhouse Health SA | Panasonic Corp vs. Universal Health Services | Panasonic Corp vs. International Consolidated Airlines | Panasonic Corp vs. HCA Healthcare |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |