Correlation Between Interactive Brokers and Afya
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers and Afya 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 Interactive Brokers and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and Afya, you can compare the effects of market volatilities on Interactive Brokers and Afya 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 Interactive Brokers with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and Afya.
Diversification Opportunities for Interactive Brokers and Afya
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Interactive and Afya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Interactive Brokers 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 Interactive Brokers Group are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Interactive Brokers i.e., Interactive Brokers and Afya go up and down completely randomly.
Pair Corralation between Interactive Brokers and Afya
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 1.26 times more return on investment than Afya. However, Interactive Brokers is 1.26 times more volatile than Afya. It trades about 0.38 of its potential returns per unit of risk. Afya is currently generating about 0.0 per unit of risk. If you would invest 15,284 in Interactive Brokers Group on August 30, 2024 and sell it today you would earn a total of 3,847 from holding Interactive Brokers Group or generate 25.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. Afya
Performance |
| Timeline |
| Interactive Brokers |
| Afya |
Interactive Brokers and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and Afya
The main advantage of trading using opposite Interactive Brokers and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Interactive Brokers vs. Chipotle Mexican Grill | Interactive Brokers vs. Dine Brands Global | Interactive Brokers vs. Aegon NV ADR | Interactive Brokers vs. PennantPark Investment |
| Afya vs. Laureate Education | Afya vs. Strategic Education | Afya vs. Grand Canyon Education | Afya vs. American Public Education |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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