Correlation Between International Business and CHUBB
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By analyzing existing cross correlation between International Business Machines and CHUBB P 68, you can compare the effects of market volatilities on International Business and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and CHUBB.
Diversification Opportunities for International Business and CHUBB
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and CHUBB is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and CHUBB P 68 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 68 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 68 has no effect on the direction of International Business i.e., International Business and CHUBB go up and down completely randomly.
Pair Corralation between International Business and CHUBB
Considering the 90-day investment horizon International Business Machines is expected to generate 2.77 times more return on investment than CHUBB. However, International Business is 2.77 times more volatile than CHUBB P 68. It trades about 0.39 of its potential returns per unit of risk. CHUBB P 68 is currently generating about -0.02 per unit of risk. If you would invest 20,330 in International Business Machines on August 31, 2024 and sell it today you would earn a total of 2,362 from holding International Business Machines or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
International Business Machine vs. CHUBB P 68
Performance |
| Timeline |
| International Business |
| CHUBB P 68 |
International Business and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and CHUBB
The main advantage of trading using opposite International Business and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB's long position.| International Business vs. RLJ Lodging Trust | International Business vs. Aquagold International | International Business vs. Stepstone Group | International Business vs. Morningstar Unconstrained Allocation |
| CHUBB vs. NioCorp Developments Ltd | CHUBB vs. Highway Holdings Limited | CHUBB vs. Consol Energy | CHUBB vs. GMS Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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