Correlation Between International Business and TRAVELERS
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By analyzing existing cross correlation between International Business Machines and TRAVELERS INC 535, you can compare the effects of market volatilities on International Business and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and TRAVELERS.
Diversification Opportunities for International Business and TRAVELERS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and TRAVELERS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and TRAVELERS INC 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 535 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 535 has no effect on the direction of International Business i.e., International Business and TRAVELERS go up and down completely randomly.
Pair Corralation between International Business and TRAVELERS
Considering the 90-day investment horizon International Business Machines is expected to generate 3.62 times more return on investment than TRAVELERS. However, International Business is 3.62 times more volatile than TRAVELERS INC 535. It trades about 0.22 of its potential returns per unit of risk. TRAVELERS INC 535 is currently generating about 0.17 per unit of risk. If you would invest 22,417 in International Business Machines on November 29, 2024 and sell it today you would earn a total of 3,167 from holding International Business Machines or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
International Business Machine vs. TRAVELERS INC 535
Performance |
| Timeline |
| International Business |
| TRAVELERS INC 535 |
International Business and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and TRAVELERS
The main advantage of trading using opposite International Business and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS'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 |
| TRAVELERS vs. PPG Industries | TRAVELERS vs. Hudson Technologies | TRAVELERS vs. Luxfer Holdings PLC | TRAVELERS vs. NL Industries |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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