Correlation Between International Consolidated and OFX Group
Can any of the company-specific risk be diversified away by investing in both International Consolidated and OFX Group 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 OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Companies and OFX Group Ltd, you can compare the effects of market volatilities on International Consolidated and OFX Group 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and OFX Group.
Diversification Opportunities for International Consolidated and OFX Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and OFX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Com and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 Companies are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of International Consolidated i.e., International Consolidated and OFX Group go up and down completely randomly.
Pair Corralation between International Consolidated and OFX Group
If you would invest 4.99 in International Consolidated Companies on October 9, 2024 and sell it today you would lose (2.49) from holding International Consolidated Companies or give up 49.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Com vs. OFX Group Ltd
Performance |
| Timeline |
| International Consolidated |
| OFX Group |
International Consolidated and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and OFX Group
The main advantage of trading using opposite International Consolidated and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| International Consolidated vs. Frontera Group | International Consolidated vs. All American Pet | International Consolidated vs. XCPCNL Business Services | International Consolidated vs. Aramark Holdings |
| OFX Group vs. SEI Investments | OFX Group vs. Summit Bank Group | OFX Group vs. Titan Machinery | OFX Group vs. Park National |
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 CEOs Directory module to screen CEOs from public companies around the world.
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