Correlation Between International Biotechnology and One Media
Can any of the company-specific risk be diversified away by investing in both International Biotechnology and One Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining International Biotechnology and One Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Biotechnology Trust and One Media iP, you can compare the effects of market volatilities on International Biotechnology and One Media 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 Biotechnology with a short position of One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Biotechnology and One Media.
Diversification Opportunities for International Biotechnology and One Media
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and One is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding International Biotechnology Tr and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP and International Biotechnology 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 Biotechnology Trust are associated (or correlated) with One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of International Biotechnology i.e., International Biotechnology and One Media go up and down completely randomly.
Pair Corralation between International Biotechnology and One Media
Assuming the 90 days trading horizon International Biotechnology Trust is expected to generate 0.45 times more return on investment than One Media. However, International Biotechnology Trust is 2.21 times less risky than One Media. It trades about 0.03 of its potential returns per unit of risk. One Media iP is currently generating about 0.0 per unit of risk. If you would invest 64,127 in International Biotechnology Trust on November 6, 2024 and sell it today you would earn a total of 8,473 from holding International Biotechnology Trust or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Biotechnology Tr vs. One Media iP
Performance |
| Timeline |
| International Biotechnology |
| One Media iP |
International Biotechnology and One Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Biotechnology and One Media
The main advantage of trading using opposite International Biotechnology and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Biotechnology position performs unexpectedly, One Media 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 One Media will offset losses from the drop in One Media's long position.| International Biotechnology vs. Flow Traders NV | International Biotechnology vs. Vulcan Materials Co | International Biotechnology vs. Kaufman Et Broad | International Biotechnology vs. Auto Trader Group |
| One Media vs. Silvercorp Metals | One Media vs. Gamma Communications PLC | One Media vs. Fulcrum Metals PLC | One Media vs. Jacquet Metal Service |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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