Correlation Between International Business and Origin Bancorp
Can any of the company-specific risk be diversified away by investing in both International Business and Origin 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 Origin 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 Origin Bancorp, you can compare the effects of market volatilities on International Business and Origin 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 Origin Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Origin Bancorp.
Diversification Opportunities for International Business and Origin Bancorp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Origin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Origin Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin 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 Origin Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Bancorp has no effect on the direction of International Business i.e., International Business and Origin Bancorp go up and down completely randomly.
Pair Corralation between International Business and Origin Bancorp
If you would invest 20,879 in International Business Machines on August 30, 2024 and sell it today you would earn a total of 1,813 from holding International Business Machines or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
International Business Machine vs. Origin Bancorp
Performance |
| Timeline |
| International Business |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and Origin Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Origin Bancorp
The main advantage of trading using opposite International Business and Origin Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Origin 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 Origin Bancorp will offset losses from the drop in Origin Bancorp's long position.| International Business vs. Merck Company | International Business vs. Pharvaris BV | International Business vs. Brinker International | International Business vs. Alcoa Corp |
| Origin Bancorp vs. Home Federal Bancorp | Origin Bancorp vs. First Financial Northwest | Origin Bancorp vs. First Northwest Bancorp | Origin Bancorp vs. First Capital |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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