Correlation Between International Business and 031162DF4
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By analyzing existing cross correlation between International Business Machines and AMGN 42 22 FEB 52, you can compare the effects of market volatilities on International Business and 031162DF4 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 031162DF4. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and 031162DF4.
Diversification Opportunities for International Business and 031162DF4
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and 031162DF4 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and AMGN 42 22 FEB 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGN 42 22 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 031162DF4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGN 42 22 has no effect on the direction of International Business i.e., International Business and 031162DF4 go up and down completely randomly.
Pair Corralation between International Business and 031162DF4
Considering the 90-day investment horizon International Business Machines is expected to generate 1.19 times more return on investment than 031162DF4. However, International Business is 1.19 times more volatile than AMGN 42 22 FEB 52. It trades about 0.12 of its potential returns per unit of risk. AMGN 42 22 FEB 52 is currently generating about 0.03 per unit of risk. If you would invest 13,602 in International Business Machines on August 26, 2024 and sell it today you would earn a total of 8,695 from holding International Business Machines or generate 63.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.29% |
| Values | Daily Returns |
International Business Machine vs. AMGN 42 22 FEB 52
Performance |
| Timeline |
| International Business |
| AMGN 42 22 |
International Business and 031162DF4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and 031162DF4
The main advantage of trading using opposite International Business and 031162DF4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, 031162DF4 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 031162DF4 will offset losses from the drop in 031162DF4'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 |
| 031162DF4 vs. AEP TEX INC | 031162DF4 vs. US BANK NATIONAL | 031162DF4 vs. 3M Company | 031162DF4 vs. Alcoa 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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