Correlation Between International Business and KROGER
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By analyzing existing cross correlation between International Business Machines and KROGER 69 percent, you can compare the effects of market volatilities on International Business and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and KROGER.
Diversification Opportunities for International Business and KROGER
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and KROGER is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and KROGER 69 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 69 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 69 percent has no effect on the direction of International Business i.e., International Business and KROGER go up and down completely randomly.
Pair Corralation between International Business and KROGER
Considering the 90-day investment horizon International Business Machines is expected to generate 0.71 times more return on investment than KROGER. However, International Business Machines is 1.41 times less risky than KROGER. It trades about 0.22 of its potential returns per unit of risk. KROGER 69 percent is currently generating about -0.1 per unit of risk. If you would invest 21,125 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 1,488 from holding International Business Machines or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.09% |
| Values | Daily Returns |
International Business Machine vs. KROGER 69 percent
Performance |
| Timeline |
| International Business |
| KROGER 69 percent |
International Business and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and KROGER
The main advantage of trading using opposite International Business and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| KROGER vs. The Coca Cola | KROGER vs. JPMorgan Chase Co | KROGER vs. Dupont De Nemours | KROGER vs. Alcoa 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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