Correlation Between International Business and Getty
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By analyzing existing cross correlation between International Business Machines and Getty Images 975, you can compare the effects of market volatilities on International Business and Getty 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 Getty. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Getty.
Diversification Opportunities for International Business and Getty
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Getty is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Getty Images 975 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 975 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 Getty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images 975 has no effect on the direction of International Business i.e., International Business and Getty go up and down completely randomly.
Pair Corralation between International Business and Getty
Considering the 90-day investment horizon International Business Machines is expected to generate 4.71 times more return on investment than Getty. However, International Business is 4.71 times more volatile than Getty Images 975. It trades about 0.21 of its potential returns per unit of risk. Getty Images 975 is currently generating about 0.03 per unit of risk. If you would invest 16,309 in International Business Machines on September 2, 2024 and sell it today you would earn a total of 6,432 from holding International Business Machines or generate 39.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.79% |
| Values | Daily Returns |
International Business Machine vs. Getty Images 975
Performance |
| Timeline |
| International Business |
| Getty Images 975 |
International Business and Getty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Getty
The main advantage of trading using opposite International Business and Getty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Getty 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 Getty will offset losses from the drop in Getty'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 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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