Correlation Between International Business and ONCOR
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By analyzing existing cross correlation between International Business Machines and ONCOR ELEC DELIVERY, you can compare the effects of market volatilities on International Business and ONCOR 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 ONCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and ONCOR.
Diversification Opportunities for International Business and ONCOR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and ONCOR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and ONCOR ELEC DELIVERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONCOR ELEC DELIVERY 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 ONCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONCOR ELEC DELIVERY has no effect on the direction of International Business i.e., International Business and ONCOR go up and down completely randomly.
Pair Corralation between International Business and ONCOR
Considering the 90-day investment horizon International Business Machines is expected to generate 3.11 times more return on investment than ONCOR. However, International Business is 3.11 times more volatile than ONCOR ELEC DELIVERY. It trades about 0.09 of its potential returns per unit of risk. ONCOR ELEC DELIVERY is currently generating about 0.0 per unit of risk. If you would invest 13,844 in International Business Machines on September 3, 2024 and sell it today you would earn a total of 8,897 from holding International Business Machines or generate 64.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
International Business Machine vs. ONCOR ELEC DELIVERY
Performance |
| Timeline |
| International Business |
| ONCOR ELEC DELIVERY |
International Business and ONCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and ONCOR
The main advantage of trading using opposite International Business and ONCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, ONCOR 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 ONCOR will offset losses from the drop in ONCOR's long position.| International Business vs. Partner Communications | International Business vs. Merck Company | International Business vs. Western Midstream Partners | International Business vs. Edgewise Therapeutics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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