Correlation Between Inter Parfums and SVB Financial
Can any of the company-specific risk be diversified away by investing in both Inter Parfums and SVB Financial 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 Inter Parfums and SVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and SVB Financial Group, you can compare the effects of market volatilities on Inter Parfums and SVB Financial 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 Inter Parfums with a short position of SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and SVB Financial.
Diversification Opportunities for Inter Parfums and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inter and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group and Inter Parfums 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 Inter Parfums are associated (or correlated) with SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Inter Parfums i.e., Inter Parfums and SVB Financial go up and down completely randomly.
Pair Corralation between Inter Parfums and SVB Financial
If you would invest 12,107 in Inter Parfums on September 1, 2024 and sell it today you would earn a total of 1,659 from holding Inter Parfums or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Inter Parfums vs. SVB Financial Group
Performance |
| Timeline |
| Inter Parfums |
| SVB Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inter Parfums and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and SVB Financial
The main advantage of trading using opposite Inter Parfums and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums position performs unexpectedly, SVB Financial 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| Inter Parfums vs. Seneca Foods Corp | Inter Parfums vs. Central Garden Pet | Inter Parfums vs. Central Garden Pet | Inter Parfums vs. Lifeway Foods |
| SVB Financial vs. Bank of America | SVB Financial vs. Black Hills | SVB Financial vs. Rocky Brands | SVB Financial vs. Timken Company |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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