Correlation Between International Business and Amex Exploration
Can any of the company-specific risk be diversified away by investing in both International Business and Amex Exploration 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 Amex Exploration 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 Amex Exploration, you can compare the effects of market volatilities on International Business and Amex Exploration 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 Amex Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Amex Exploration.
Diversification Opportunities for International Business and Amex Exploration
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and Amex is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Amex Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amex Exploration 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 Amex Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amex Exploration has no effect on the direction of International Business i.e., International Business and Amex Exploration go up and down completely randomly.
Pair Corralation between International Business and Amex Exploration
Considering the 90-day investment horizon International Business Machines is expected to generate 0.48 times more return on investment than Amex Exploration. However, International Business Machines is 2.1 times less risky than Amex Exploration. It trades about 0.11 of its potential returns per unit of risk. Amex Exploration is currently generating about -0.05 per unit of risk. If you would invest 20,996 in International Business Machines on September 12, 2024 and sell it today you would earn a total of 2,176 from holding International Business Machines or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Amex Exploration
Performance |
| Timeline |
| International Business |
| Amex Exploration |
International Business and Amex Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Amex Exploration
The main advantage of trading using opposite International Business and Amex Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Amex Exploration 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 Amex Exploration will offset losses from the drop in Amex Exploration's long position.| International Business vs. The Hackett Group | International Business vs. Nayax | International Business vs. Formula Systems 1985 | International Business vs. Information Services Group |
| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |