Correlation Between International Business and Banyan Gold
Can any of the company-specific risk be diversified away by investing in both International Business and Banyan Gold 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 Banyan Gold 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 Banyan Gold Corp, you can compare the effects of market volatilities on International Business and Banyan Gold 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 Banyan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Banyan Gold.
Diversification Opportunities for International Business and Banyan Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Banyan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Banyan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banyan Gold Corp 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 Banyan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banyan Gold Corp has no effect on the direction of International Business i.e., International Business and Banyan Gold go up and down completely randomly.
Pair Corralation between International Business and Banyan Gold
Considering the 90-day investment horizon International Business Machines is expected to generate 0.61 times more return on investment than Banyan Gold. However, International Business Machines is 1.64 times less risky than Banyan Gold. It trades about 0.13 of its potential returns per unit of risk. Banyan Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 22,900 in International Business Machines on November 3, 2024 and sell it today you would earn a total of 2,670 from holding International Business Machines or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Banyan Gold Corp
Performance |
| Timeline |
| International Business |
| Banyan Gold Corp |
International Business and Banyan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Banyan Gold
The main advantage of trading using opposite International Business and Banyan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Banyan Gold 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 Banyan Gold will offset losses from the drop in Banyan Gold's long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| Banyan Gold vs. Antioquia Gold | Banyan Gold vs. C2C Gold Corp | Banyan Gold vs. Asante Gold | Banyan Gold vs. Dynacor Gold Mines |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |