Correlation Between International Business and EXELON
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By analyzing existing cross correlation between International Business Machines and EXELON GENERATION LLC, you can compare the effects of market volatilities on International Business and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and EXELON.
Diversification Opportunities for International Business and EXELON
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and EXELON is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of International Business i.e., International Business and EXELON go up and down completely randomly.
Pair Corralation between International Business and EXELON
Considering the 90-day investment horizon International Business Machines is expected to generate 1.04 times more return on investment than EXELON. However, International Business is 1.04 times more volatile than EXELON GENERATION LLC. It trades about 0.39 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.07 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. EXELON GENERATION LLC
Performance |
| Timeline |
| International Business |
| EXELON GENERATION LLC |
International Business and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and EXELON
The main advantage of trading using opposite International Business and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON'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 |
| EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. International Business Machines | EXELON vs. Intel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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