Correlation Between Gartner and IBEX
Can any of the company-specific risk be diversified away by investing in both Gartner and IBEX 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 Gartner and IBEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and IBEX, you can compare the effects of market volatilities on Gartner and IBEX 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 Gartner with a short position of IBEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and IBEX.
Diversification Opportunities for Gartner and IBEX
Poor diversification
The 3 months correlation between Gartner and IBEX is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and IBEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBEX and Gartner 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 Gartner are associated (or correlated) with IBEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX has no effect on the direction of Gartner i.e., Gartner and IBEX go up and down completely randomly.
Pair Corralation between Gartner and IBEX
Allowing for the 90-day total investment horizon Gartner is expected to generate 11.16 times less return on investment than IBEX. But when comparing it to its historical volatility, Gartner is 1.5 times less risky than IBEX. It trades about 0.04 of its potential returns per unit of risk. IBEX is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,833 in IBEX on August 27, 2024 and sell it today you would earn a total of 259.00 from holding IBEX or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. IBEX
Performance |
| Timeline |
| Gartner |
| IBEX |
Gartner and IBEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and IBEX
The main advantage of trading using opposite Gartner and IBEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, IBEX 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 IBEX will offset losses from the drop in IBEX's long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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