Correlation Between International Business and ENTERGY
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By analyzing existing cross correlation between International Business Machines and ENTERGY PORATION, you can compare the effects of market volatilities on International Business and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and ENTERGY.
Diversification Opportunities for International Business and ENTERGY
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and ENTERGY is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and ENTERGY PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY PORATION 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY PORATION has no effect on the direction of International Business i.e., International Business and ENTERGY go up and down completely randomly.
Pair Corralation between International Business and ENTERGY
Considering the 90-day investment horizon International Business Machines is expected to generate 4.64 times more return on investment than ENTERGY. However, International Business is 4.64 times more volatile than ENTERGY PORATION. It trades about 0.08 of its potential returns per unit of risk. ENTERGY PORATION is currently generating about 0.01 per unit of risk. If you would invest 15,445 in International Business Machines on January 25, 2025 and sell it today you would earn a total of 7,796 from holding International Business Machines or generate 50.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
International Business Machine vs. ENTERGY PORATION
Performance |
| Timeline |
| International Business |
| ENTERGY PORATION |
International Business and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and ENTERGY
The main advantage of trading using opposite International Business and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY'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 |
| ENTERGY vs. AEP TEX INC | ENTERGY vs. Palantir Technologies Class | ENTERGY vs. KKR P D | ENTERGY vs. Westhaven Gold 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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