Correlation Between International Business and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both International Business and Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings plc, you can compare the effects of market volatilities on International Business and Oncimmune Holdings 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 Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Oncimmune Holdings.
Diversification Opportunities for International Business and Oncimmune Holdings
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Oncimmune is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc 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 Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of International Business i.e., International Business and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between International Business and Oncimmune Holdings
Assuming the 90 days trading horizon International Business Machines is expected to generate 0.04 times more return on investment than Oncimmune Holdings. However, International Business Machines is 23.58 times less risky than Oncimmune Holdings. It trades about 0.06 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.01 per unit of risk. If you would invest 11,728 in International Business Machines on August 29, 2024 and sell it today you would earn a total of 167.00 from holding International Business Machines or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.28% |
| Values | Daily Returns |
International Business Machine vs. Oncimmune Holdings plc
Performance |
| Timeline |
| International Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oncimmune Holdings plc |
International Business and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Oncimmune Holdings
The main advantage of trading using opposite International Business and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| International Business vs. Waste Management | International Business vs. Synthomer plc | International Business vs. Beazer Homes USA | International Business vs. Ecclesiastical Insurance Office |
| Oncimmune Holdings vs. JD Sports Fashion | Oncimmune Holdings vs. Polar Capital Technology | Oncimmune Holdings vs. Science in Sport | Oncimmune Holdings vs. Universal Display Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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