Correlation Between International Business and SUMIBK
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By analyzing existing cross correlation between International Business Machines and SUMIBK 2222 17 SEP 31, you can compare the effects of market volatilities on International Business and SUMIBK 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 SUMIBK. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and SUMIBK.
Diversification Opportunities for International Business and SUMIBK
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and SUMIBK is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and SUMIBK 2222 17 SEP 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMIBK 2222 17 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 SUMIBK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMIBK 2222 17 has no effect on the direction of International Business i.e., International Business and SUMIBK go up and down completely randomly.
Pair Corralation between International Business and SUMIBK
Considering the 90-day investment horizon International Business Machines is expected to generate 1.13 times more return on investment than SUMIBK. However, International Business is 1.13 times more volatile than SUMIBK 2222 17 SEP 31. It trades about 0.09 of its potential returns per unit of risk. SUMIBK 2222 17 SEP 31 is currently generating about 0.01 per unit of risk. If you would invest 13,719 in International Business Machines on September 2, 2024 and sell it today you would earn a total of 9,022 from holding International Business Machines or generate 65.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.3% |
| Values | Daily Returns |
International Business Machine vs. SUMIBK 2222 17 SEP 31
Performance |
| Timeline |
| International Business |
| SUMIBK 2222 17 |
International Business and SUMIBK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and SUMIBK
The main advantage of trading using opposite International Business and SUMIBK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, SUMIBK 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 SUMIBK will offset losses from the drop in SUMIBK'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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