Correlation Between International Business and CONSOLIDATED
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By analyzing existing cross correlation between International Business Machines and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on International Business and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and CONSOLIDATED.
Diversification Opportunities for International Business and CONSOLIDATED
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and CONSOLIDATED is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of International Business i.e., International Business and CONSOLIDATED go up and down completely randomly.
Pair Corralation between International Business and CONSOLIDATED
Considering the 90-day investment horizon International Business Machines is expected to generate 0.74 times more return on investment than CONSOLIDATED. However, International Business Machines is 1.36 times less risky than CONSOLIDATED. It trades about 0.35 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about -0.14 per unit of risk. If you would invest 20,662 in International Business Machines on September 2, 2024 and sell it today you would earn a total of 2,079 from holding International Business Machines or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
International Business Machine vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
| International Business |
| CONSOLIDATED EDISON |
International Business and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and CONSOLIDATED
The main advantage of trading using opposite International Business and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| CONSOLIDATED vs. Cabo Drilling Corp | CONSOLIDATED vs. Transocean | CONSOLIDATED vs. Bt Brands | CONSOLIDATED vs. HF Sinclair 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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