Correlation Between INTERNATIONAL ENERGY and ABBEY MORTGAGE
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and ABBEY MORTGAGE BANK, you can compare the effects of market volatilities on INTERNATIONAL ENERGY and ABBEY MORTGAGE 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 ENERGY with a short position of ABBEY MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and ABBEY MORTGAGE.
Diversification Opportunities for INTERNATIONAL ENERGY and ABBEY MORTGAGE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERNATIONAL and ABBEY is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE and ABBEY MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBEY MORTGAGE BANK and INTERNATIONAL ENERGY 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 ENERGY INSURANCE are associated (or correlated) with ABBEY MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBEY MORTGAGE BANK has no effect on the direction of INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and ABBEY MORTGAGE go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and ABBEY MORTGAGE
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to generate 1.07 times more return on investment than ABBEY MORTGAGE. However, INTERNATIONAL ENERGY is 1.07 times more volatile than ABBEY MORTGAGE BANK. It trades about 0.1 of its potential returns per unit of risk. ABBEY MORTGAGE BANK is currently generating about 0.07 per unit of risk. If you would invest 49.00 in INTERNATIONAL ENERGY INSURANCE on October 12, 2024 and sell it today you would earn a total of 155.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 316.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. ABBEY MORTGAGE BANK
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| ABBEY MORTGAGE BANK |
INTERNATIONAL ENERGY and ABBEY MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and ABBEY MORTGAGE
The main advantage of trading using opposite INTERNATIONAL ENERGY and ABBEY MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY position performs unexpectedly, ABBEY MORTGAGE 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 ABBEY MORTGAGE will offset losses from the drop in ABBEY MORTGAGE's long position.| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. SECURE ELECTRONIC TECHNOLOGY | INTERNATIONAL ENERGY vs. SFS REAL ESTATE | INTERNATIONAL ENERGY vs. VFD GROUP |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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