Correlation Between International Business and REGENCY
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By analyzing existing cross correlation between International Business Machines and REGENCY CTRS L, you can compare the effects of market volatilities on International Business and REGENCY 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 REGENCY. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and REGENCY.
Diversification Opportunities for International Business and REGENCY
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and REGENCY is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and REGENCY CTRS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGENCY CTRS L 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 REGENCY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGENCY CTRS L has no effect on the direction of International Business i.e., International Business and REGENCY go up and down completely randomly.
Pair Corralation between International Business and REGENCY
Considering the 90-day investment horizon International Business Machines is expected to generate 2.95 times more return on investment than REGENCY. However, International Business is 2.95 times more volatile than REGENCY CTRS L. It trades about 0.16 of its potential returns per unit of risk. REGENCY CTRS L is currently generating about -0.16 per unit of risk. If you would invest 19,691 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 2,922 from holding International Business Machines or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.02% |
| Values | Daily Returns |
International Business Machine vs. REGENCY CTRS L
Performance |
| Timeline |
| International Business |
| REGENCY CTRS L |
International Business and REGENCY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and REGENCY
The main advantage of trading using opposite International Business and REGENCY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, REGENCY 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 REGENCY will offset losses from the drop in REGENCY'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 |
| REGENCY vs. PGE Corp | REGENCY vs. Pintec Technology Holdings | REGENCY vs. Western Union Co | REGENCY vs. Discover Financial Services |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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