Correlation Between International Business and Leverage Shares
Can any of the company-specific risk be diversified away by investing in both International Business and Leverage Shares 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 Business and Leverage Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Leverage Shares 2x, you can compare the effects of market volatilities on International Business and Leverage Shares 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 Business with a short position of Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Leverage Shares.
Diversification Opportunities for International Business and Leverage Shares
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Leverage is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Leverage Shares 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 2x and International Business 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 Business Machines are associated (or correlated) with Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 2x has no effect on the direction of International Business i.e., International Business and Leverage Shares go up and down completely randomly.
Pair Corralation between International Business and Leverage Shares
If you would invest 4,986 in Leverage Shares 2x on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Leverage Shares 2x or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
International Business Machine vs. Leverage Shares 2x
Performance |
| Timeline |
| International Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leverage Shares 2x |
International Business and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Leverage Shares
The main advantage of trading using opposite International Business and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| International Business vs. Ironveld Plc | International Business vs. Litigation Capital Management | International Business vs. Advanced Medical Solutions | International Business vs. Veolia Environnement VE |
| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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