Correlation Between Information Services and N Able
Can any of the company-specific risk be diversified away by investing in both Information Services and N Able 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 Information Services and N Able into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services Group and N Able Inc, you can compare the effects of market volatilities on Information Services and N Able 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 Information Services with a short position of N Able. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and N Able.
Diversification Opportunities for Information Services and N Able
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Information and NABL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Information Services Group and N Able Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Able Inc and Information Services 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 Information Services Group are associated (or correlated) with N Able. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Able Inc has no effect on the direction of Information Services i.e., Information Services and N Able go up and down completely randomly.
Pair Corralation between Information Services and N Able
Considering the 90-day investment horizon Information Services Group is expected to generate 1.18 times more return on investment than N Able. However, Information Services is 1.18 times more volatile than N Able Inc. It trades about 0.04 of its potential returns per unit of risk. N Able Inc is currently generating about -0.25 per unit of risk. If you would invest 312.00 in Information Services Group on October 26, 2024 and sell it today you would earn a total of 11.00 from holding Information Services Group or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services Group vs. N Able Inc
Performance |
| Timeline |
| Information Services |
| N Able Inc |
Information Services and N Able Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and N Able
The main advantage of trading using opposite Information Services and N Able positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services position performs unexpectedly, N Able 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 N Able will offset losses from the drop in N Able's long position.| Information Services vs. Formula Systems 1985 | Information Services vs. CSP Inc | Information Services vs. Nayax | Information Services vs. The Hackett Group |
| N Able vs. ExlService Holdings | N Able vs. ASGN Inc | N Able vs. Parsons Corp | N Able vs. CACI 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |