Correlation Between International Business and Kaiser
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By analyzing existing cross correlation between International Business Machines and Kaiser Permanente, you can compare the effects of market volatilities on International Business and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Kaiser.
Diversification Opportunities for International Business and Kaiser
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Kaiser is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of International Business i.e., International Business and Kaiser go up and down completely randomly.
Pair Corralation between International Business and Kaiser
Considering the 90-day investment horizon International Business Machines is expected to generate 0.81 times more return on investment than Kaiser. However, International Business Machines is 1.24 times less risky than Kaiser. It trades about 0.35 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.06 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 Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
International Business Machine vs. Kaiser Permanente
Performance |
| Timeline |
| International Business |
| Kaiser Permanente |
International Business and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Kaiser
The main advantage of trading using opposite International Business and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser'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 |
| Kaiser vs. AEP TEX INC | Kaiser vs. US BANK NATIONAL | Kaiser vs. FactSet Research Systems | Kaiser vs. Aurora Innovation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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