Correlation Between International Business and SERVICE
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By analyzing existing cross correlation between International Business Machines and SERVICE P INTL, you can compare the effects of market volatilities on International Business and SERVICE 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 SERVICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and SERVICE.
Diversification Opportunities for International Business and SERVICE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and SERVICE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and SERVICE P INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERVICE P INTL 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 SERVICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERVICE P INTL has no effect on the direction of International Business i.e., International Business and SERVICE go up and down completely randomly.
Pair Corralation between International Business and SERVICE
Considering the 90-day investment horizon International Business Machines is expected to generate 2.19 times more return on investment than SERVICE. However, International Business is 2.19 times more volatile than SERVICE P INTL. It trades about 0.21 of its potential returns per unit of risk. SERVICE P INTL is currently generating about 0.0 per unit of risk. If you would invest 16,309 in International Business Machines on September 2, 2024 and sell it today you would earn a total of 6,432 from holding International Business Machines or generate 39.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
International Business Machine vs. SERVICE P INTL
Performance |
| Timeline |
| International Business |
| SERVICE P INTL |
International Business and SERVICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and SERVICE
The main advantage of trading using opposite International Business and SERVICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, SERVICE 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 SERVICE will offset losses from the drop in SERVICE'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 |
| SERVICE vs. AEP TEX INC | SERVICE vs. US BANK NATIONAL | SERVICE vs. Bank of America | SERVICE vs. GE Aerospace |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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