Correlation Between International Business and Teton Advisors
Can any of the company-specific risk be diversified away by investing in both International Business and Teton Advisors 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 Teton Advisors 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 Teton Advisors, you can compare the effects of market volatilities on International Business and Teton Advisors 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 Teton Advisors. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Teton Advisors.
Diversification Opportunities for International Business and Teton Advisors
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Teton is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Teton Advisors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Advisors 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 Teton Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Advisors has no effect on the direction of International Business i.e., International Business and Teton Advisors go up and down completely randomly.
Pair Corralation between International Business and Teton Advisors
Considering the 90-day investment horizon International Business Machines is expected to generate 1.09 times more return on investment than Teton Advisors. However, International Business is 1.09 times more volatile than Teton Advisors. It trades about 0.03 of its potential returns per unit of risk. Teton Advisors is currently generating about -0.11 per unit of risk. If you would invest 21,924 in International Business Machines on October 24, 2024 and sell it today you would earn a total of 555.00 from holding International Business Machines or generate 2.53% 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. Teton Advisors
Performance |
| Timeline |
| International Business |
| Teton Advisors |
International Business and Teton Advisors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Teton Advisors
The main advantage of trading using opposite International Business and Teton Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Teton Advisors 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 Teton Advisors will offset losses from the drop in Teton Advisors' long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. Fiserv Inc |
| Teton Advisors vs. Invesco Pennsylvania Value | Teton Advisors vs. Invesco Trust For | Teton Advisors vs. Invesco Advantage MIT | Teton Advisors vs. Angel Oak Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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