Correlation Between International Business and Knightscope
Can any of the company-specific risk be diversified away by investing in both International Business and Knightscope 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 Knightscope 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 Knightscope, you can compare the effects of market volatilities on International Business and Knightscope 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 Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Knightscope.
Diversification Opportunities for International Business and Knightscope
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Knightscope is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope 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 Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of International Business i.e., International Business and Knightscope go up and down completely randomly.
Pair Corralation between International Business and Knightscope
Considering the 90-day investment horizon International Business Machines is expected to generate 0.14 times more return on investment than Knightscope. However, International Business Machines is 6.91 times less risky than Knightscope. It trades about 0.09 of its potential returns per unit of risk. Knightscope is currently generating about 0.0 per unit of risk. If you would invest 13,562 in International Business Machines on August 27, 2024 and sell it today you would earn a total of 8,735 from holding International Business Machines or generate 64.41% 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. Knightscope
Performance |
| Timeline |
| International Business |
| Knightscope |
International Business and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Knightscope
The main advantage of trading using opposite International Business and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope'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 |
| Knightscope vs. Plexus Corp | Knightscope vs. Jabil Circuit | Knightscope vs. Sanmina | Knightscope vs. Methode Electronics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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