Correlation Between International Consolidated and Trend Micro
Can any of the company-specific risk be diversified away by investing in both International Consolidated and Trend Micro 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 Consolidated and Trend Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and Trend Micro, you can compare the effects of market volatilities on International Consolidated and Trend Micro 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 Consolidated with a short position of Trend Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Trend Micro.
Diversification Opportunities for International Consolidated and Trend Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Trend is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and Trend Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Micro and International Consolidated 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 Consolidated Airlines are associated (or correlated) with Trend Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Micro has no effect on the direction of International Consolidated i.e., International Consolidated and Trend Micro go up and down completely randomly.
Pair Corralation between International Consolidated and Trend Micro
If you would invest 402.00 in International Consolidated Airlines on October 25, 2024 and sell it today you would earn a total of 407.00 from holding International Consolidated Airlines or generate 101.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
International Consolidated Air vs. Trend Micro
Performance |
| Timeline |
| International Consolidated |
| Trend Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Consolidated and Trend Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Trend Micro
The main advantage of trading using opposite International Consolidated and Trend Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, Trend Micro 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 Trend Micro will offset losses from the drop in Trend Micro's long position.| International Consolidated vs. Air France KLM SA | International Consolidated vs. Air France KLM | International Consolidated vs. Finnair Oyj | International Consolidated vs. AirAsia Group Berhad |
| Trend Micro vs. Perseus Mining Limited | Trend Micro vs. Aluminum of | Trend Micro vs. Copperbank Resources Corp | Trend Micro vs. TFI International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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