Correlation Between International Business and KS Bancorp
Can any of the company-specific risk be diversified away by investing in both International Business and KS Bancorp 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 KS Bancorp 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 KS Bancorp, you can compare the effects of market volatilities on International Business and KS Bancorp 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 KS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and KS Bancorp.
Diversification Opportunities for International Business and KS Bancorp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and KSBI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and KS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KS Bancorp 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 KS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KS Bancorp has no effect on the direction of International Business i.e., International Business and KS Bancorp go up and down completely randomly.
Pair Corralation between International Business and KS Bancorp
Considering the 90-day investment horizon International Business Machines is expected to generate 0.81 times more return on investment than KS Bancorp. However, International Business Machines is 1.23 times less risky than KS Bancorp. It trades about 0.14 of its potential returns per unit of risk. KS Bancorp is currently generating about 0.03 per unit of risk. If you would invest 11,509 in International Business Machines on August 27, 2024 and sell it today you would earn a total of 10,788 from holding International Business Machines or generate 93.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.32% |
| Values | Daily Returns |
International Business Machine vs. KS Bancorp
Performance |
| Timeline |
| International Business |
| KS Bancorp |
International Business and KS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and KS Bancorp
The main advantage of trading using opposite International Business and KS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, KS Bancorp 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 KS Bancorp will offset losses from the drop in KS Bancorp'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 |
| KS Bancorp vs. Carter Bank and | KS Bancorp vs. Blue Ridge Bankshares | KS Bancorp vs. First Bancorp | KS Bancorp vs. Truist Financial Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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