Correlation Between International Business and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both International Business and Jacob Funds 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 Jacob Funds 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 Jacob Funds , you can compare the effects of market volatilities on International Business and Jacob Funds 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 Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Jacob Funds.
Diversification Opportunities for International Business and Jacob Funds
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Jacob is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds 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 Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of International Business i.e., International Business and Jacob Funds go up and down completely randomly.
Pair Corralation between International Business and Jacob Funds
If you would invest 20,471 in International Business Machines on September 4, 2024 and sell it today you would earn a total of 2,268 from holding International Business Machines or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Business Machine vs. Jacob Funds
Performance |
| Timeline |
| International Business |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Jacob Funds
The main advantage of trading using opposite International Business and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| Jacob Funds vs. Goldman Sachs High | Jacob Funds vs. Ab Global Risk | Jacob Funds vs. Ab High Income | Jacob Funds vs. T Rowe Price |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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