Correlation Between Interactive Brokers and Engie SA
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers and Engie SA 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 Engie SA 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 Engie SA, you can compare the effects of market volatilities on Interactive Brokers and Engie SA 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 Engie SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and Engie SA.
Diversification Opportunities for Interactive Brokers and Engie SA
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Interactive and Engie is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and Engie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie SA 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 Engie SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie SA has no effect on the direction of Interactive Brokers i.e., Interactive Brokers and Engie SA go up and down completely randomly.
Pair Corralation between Interactive Brokers and Engie SA
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 0.86 times more return on investment than Engie SA. However, Interactive Brokers Group is 1.17 times less risky than Engie SA. It trades about 0.35 of its potential returns per unit of risk. Engie SA is currently generating about -0.07 per unit of risk. If you would invest 13,936 in Interactive Brokers Group on August 29, 2024 and sell it today you would earn a total of 5,359 from holding Interactive Brokers Group or generate 38.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. Engie SA
Performance |
| Timeline |
| Interactive Brokers |
| Engie SA |
Interactive Brokers and Engie SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and Engie SA
The main advantage of trading using opposite Interactive Brokers and Engie SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers position performs unexpectedly, Engie SA 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 Engie SA will offset losses from the drop in Engie SA's long position.| Interactive Brokers vs. Cimpress NV | Interactive Brokers vs. JD Sports Fashion | Interactive Brokers vs. Universal Display | Interactive Brokers vs. Stagwell |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |