Correlation Between International Business and SUMITOMO
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By analyzing existing cross correlation between International Business Machines and SUMITOMO MITSUI FINL, you can compare the effects of market volatilities on International Business and SUMITOMO 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 SUMITOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and SUMITOMO.
Diversification Opportunities for International Business and SUMITOMO
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and SUMITOMO is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and SUMITOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITOMO MITSUI FINL 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 SUMITOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITOMO MITSUI FINL has no effect on the direction of International Business i.e., International Business and SUMITOMO go up and down completely randomly.
Pair Corralation between International Business and SUMITOMO
Considering the 90-day investment horizon International Business Machines is expected to generate 1.43 times more return on investment than SUMITOMO. However, International Business is 1.43 times more volatile than SUMITOMO MITSUI FINL. It trades about 0.18 of its potential returns per unit of risk. SUMITOMO MITSUI FINL is currently generating about -0.29 per unit of risk. If you would invest 21,125 in International Business Machines on August 27, 2024 and sell it today you would earn a total of 1,172 from holding International Business Machines or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
International Business Machine vs. SUMITOMO MITSUI FINL
Performance |
| Timeline |
| International Business |
| SUMITOMO MITSUI FINL |
International Business and SUMITOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and SUMITOMO
The main advantage of trading using opposite International Business and SUMITOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, SUMITOMO 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 SUMITOMO will offset losses from the drop in SUMITOMO'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 |
| SUMITOMO vs. Mayfair Gold Corp | SUMITOMO vs. Hillman Solutions Corp | SUMITOMO vs. Pentair PLC | SUMITOMO vs. Toro Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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