Correlation Between International Business and Athenex
Can any of the company-specific risk be diversified away by investing in both International Business and Athenex 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 Athenex 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 Athenex, you can compare the effects of market volatilities on International Business and Athenex 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 Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Athenex.
Diversification Opportunities for International Business and Athenex
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Athenex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex 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 Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of International Business i.e., International Business and Athenex go up and down completely randomly.
Pair Corralation between International Business and Athenex
If you would invest 21,125 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 1,758 from holding International Business Machines or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
International Business Machine vs. Athenex
Performance |
| Timeline |
| International Business |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Athenex
The main advantage of trading using opposite International Business and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex's long position.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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