Correlation Between INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL.
Diversification Opportunities for INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERNATIONAL and INDUSTRIAL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES 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 INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon INTERNATIONAL ENERGY is expected to generate 5.12 times less return on investment than INDUSTRIAL MEDICAL. In addition to that, INTERNATIONAL ENERGY is 1.38 times more volatile than INDUSTRIAL MEDICAL GASES. It trades about 0.03 of its total potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.19 per unit of volatility. If you would invest 771.00 in INDUSTRIAL MEDICAL GASES on August 31, 2024 and sell it today you would earn a total of 3,024 from holding INDUSTRIAL MEDICAL GASES or generate 392.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.91% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| INDUSTRIAL MEDICAL GASES |
INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL
The main advantage of trading using opposite INTERNATIONAL ENERGY and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| INTERNATIONAL ENERGY vs. UNITED BANK FOR | INTERNATIONAL ENERGY vs. STERLING FINANCIAL HOLDINGS | INTERNATIONAL ENERGY vs. AFROMEDIA PLC | INTERNATIONAL ENERGY vs. CORNERSTONE INSURANCE PLC |
| INDUSTRIAL MEDICAL vs. SECURE ELECTRONIC TECHNOLOGY | INDUSTRIAL MEDICAL vs. VFD GROUP | INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. DEAP CAPITAL MANAGEMENT |
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.
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