Correlation Between International Business and PACIFICORP
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By analyzing existing cross correlation between International Business Machines and PACIFICORP 635 percent, you can compare the effects of market volatilities on International Business and PACIFICORP 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 PACIFICORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and PACIFICORP.
Diversification Opportunities for International Business and PACIFICORP
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and PACIFICORP is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and PACIFICORP 635 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFICORP 635 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 PACIFICORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFICORP 635 percent has no effect on the direction of International Business i.e., International Business and PACIFICORP go up and down completely randomly.
Pair Corralation between International Business and PACIFICORP
Considering the 90-day investment horizon International Business Machines is expected to generate 0.92 times more return on investment than PACIFICORP. However, International Business Machines is 1.08 times less risky than PACIFICORP. It trades about 0.39 of its potential returns per unit of risk. PACIFICORP 635 percent is currently generating about 0.12 per unit of risk. If you would invest 20,330 in International Business Machines on August 31, 2024 and sell it today you would earn a total of 2,411 from holding International Business Machines or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.61% |
| Values | Daily Returns |
International Business Machine vs. PACIFICORP 635 percent
Performance |
| Timeline |
| International Business |
| PACIFICORP 635 percent |
International Business and PACIFICORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and PACIFICORP
The main advantage of trading using opposite International Business and PACIFICORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, PACIFICORP 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 PACIFICORP will offset losses from the drop in PACIFICORP'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 |
| PACIFICORP vs. AEP TEX INC | PACIFICORP vs. US BANK NATIONAL | PACIFICORP vs. International Business Machines | PACIFICORP 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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