Correlation Between INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY 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 INDUSTRIAL MEDICAL with a short position of INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY.
Diversification Opportunities for INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INDUSTRIAL and INTERNATIONAL is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.7 times more return on investment than INTERNATIONAL ENERGY. However, INDUSTRIAL MEDICAL GASES is 1.43 times less risky than INTERNATIONAL ENERGY. It trades about 0.29 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.06 per unit of risk. If you would invest 1,570 in INDUSTRIAL MEDICAL GASES on November 3, 2024 and sell it today you would earn a total of 2,230 from holding INDUSTRIAL MEDICAL GASES or generate 142.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| INTERNATIONAL ENERGY |
INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY
The main advantage of trading using opposite INDUSTRIAL MEDICAL and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| INDUSTRIAL MEDICAL vs. GOLDEN GUINEA BREWERIES | INDUSTRIAL MEDICAL vs. BUA FOODS PLC | INDUSTRIAL MEDICAL vs. ABBEY MORTGAGE BANK | INDUSTRIAL MEDICAL vs. MULTI TREX INTEGRATED FOODS |
| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. SECURE ELECTRONIC TECHNOLOGY | INTERNATIONAL ENERGY vs. VFD GROUP | INTERNATIONAL ENERGY vs. IKEJA HOTELS PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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