Correlation Between International Business and 693304AT4
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By analyzing existing cross correlation between International Business Machines and PECO ENERGY 315, you can compare the effects of market volatilities on International Business and 693304AT4 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 693304AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and 693304AT4.
Diversification Opportunities for International Business and 693304AT4
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and 693304AT4 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and PECO ENERGY 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 315 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 693304AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 315 has no effect on the direction of International Business i.e., International Business and 693304AT4 go up and down completely randomly.
Pair Corralation between International Business and 693304AT4
Considering the 90-day investment horizon International Business Machines is expected to generate 1.4 times more return on investment than 693304AT4. However, International Business is 1.4 times more volatile than PECO ENERGY 315. It trades about 0.35 of its potential returns per unit of risk. PECO ENERGY 315 is currently generating about -0.22 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 | 90.48% |
| Values | Daily Returns |
International Business Machine vs. PECO ENERGY 315
Performance |
| Timeline |
| International Business |
| PECO ENERGY 315 |
International Business and 693304AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and 693304AT4
The main advantage of trading using opposite International Business and 693304AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, 693304AT4 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 693304AT4 will offset losses from the drop in 693304AT4'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 |
| 693304AT4 vs. AEP TEX INC | 693304AT4 vs. US BANK NATIONAL | 693304AT4 vs. International Business Machines | 693304AT4 vs. Intel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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