Correlation Between International Business and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both International Business and Greencity Acquisition 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 Greencity Acquisition 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 Greencity Acquisition Corp, you can compare the effects of market volatilities on International Business and Greencity Acquisition 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 Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Greencity Acquisition.
Diversification Opportunities for International Business and Greencity Acquisition
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Greencity is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition 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 Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of International Business i.e., International Business and Greencity Acquisition go up and down completely randomly.
Pair Corralation between International Business and Greencity Acquisition
If you would invest 21,994 in International Business Machines on November 3, 2024 and sell it today you would earn a total of 3,576 from holding International Business Machines or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Business Machine vs. Greencity Acquisition Corp
Performance |
| Timeline |
| International Business |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Greencity Acquisition
The main advantage of trading using opposite International Business and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition's long position.| International Business vs. Innodata | International Business vs. ProShares Russell Dividend | International Business vs. United Rentals | International Business vs. Kforce Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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