Correlation Between International Business and 361448BC6
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By analyzing existing cross correlation between International Business Machines and GATX P 455, you can compare the effects of market volatilities on International Business and 361448BC6 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 361448BC6. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and 361448BC6.
Diversification Opportunities for International Business and 361448BC6
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and 361448BC6 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and GATX P 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX P 455 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 361448BC6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX P 455 has no effect on the direction of International Business i.e., International Business and 361448BC6 go up and down completely randomly.
Pair Corralation between International Business and 361448BC6
Considering the 90-day investment horizon International Business Machines is expected to generate 1.48 times more return on investment than 361448BC6. However, International Business is 1.48 times more volatile than GATX P 455. It trades about 0.26 of its potential returns per unit of risk. GATX P 455 is currently generating about -0.05 per unit of risk. If you would invest 20,879 in International Business Machines on August 30, 2024 and sell it today you would earn a total of 1,813 from holding International Business Machines or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.17% |
| Values | Daily Returns |
International Business Machine vs. GATX P 455
Performance |
| Timeline |
| International Business |
| GATX P 455 |
International Business and 361448BC6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and 361448BC6
The main advantage of trading using opposite International Business and 361448BC6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, 361448BC6 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 361448BC6 will offset losses from the drop in 361448BC6's long position.| International Business vs. The Hackett Group | International Business vs. Nayax | International Business vs. Formula Systems 1985 | International Business vs. Information Services Group |
| 361448BC6 vs. AEP TEX INC | 361448BC6 vs. US BANK NATIONAL | 361448BC6 vs. Nasdaq Inc | 361448BC6 vs. Vertiv Holdings Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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