Correlation Between IBEX and Cyxtera Technologies
Can any of the company-specific risk be diversified away by investing in both IBEX and Cyxtera Technologies 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 IBEX and Cyxtera Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBEX and Cyxtera Technologies, you can compare the effects of market volatilities on IBEX and Cyxtera Technologies 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 IBEX with a short position of Cyxtera Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX and Cyxtera Technologies.
Diversification Opportunities for IBEX and Cyxtera Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBEX and Cyxtera is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding IBEX and Cyxtera Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxtera Technologies and IBEX 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 IBEX are associated (or correlated) with Cyxtera Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxtera Technologies has no effect on the direction of IBEX i.e., IBEX and Cyxtera Technologies go up and down completely randomly.
Pair Corralation between IBEX and Cyxtera Technologies
If you would invest 1,796 in IBEX on September 1, 2024 and sell it today you would earn a total of 254.00 from holding IBEX or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
IBEX vs. Cyxtera Technologies
Performance |
| Timeline |
| IBEX |
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IBEX and Cyxtera Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBEX and Cyxtera Technologies
The main advantage of trading using opposite IBEX and Cyxtera Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX position performs unexpectedly, Cyxtera Technologies 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 Cyxtera Technologies will offset losses from the drop in Cyxtera Technologies' long position.The idea behind IBEX and Cyxtera Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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