Correlation Between Nayax and International Business
Can any of the company-specific risk be diversified away by investing in both Nayax and International Business 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 Nayax and International Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nayax and International Business Machines, you can compare the effects of market volatilities on Nayax and International Business 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 Nayax with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and International Business.
Diversification Opportunities for Nayax and International Business
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nayax and International is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and Nayax 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 Nayax are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Nayax i.e., Nayax and International Business go up and down completely randomly.
Pair Corralation between Nayax and International Business
Given the investment horizon of 90 days Nayax is expected to generate 1.98 times less return on investment than International Business. In addition to that, Nayax is 2.5 times more volatile than International Business Machines. It trades about 0.04 of its total potential returns per unit of risk. International Business Machines is currently generating about 0.18 per unit of volatility. If you would invest 16,687 in International Business Machines on August 24, 2024 and sell it today you would earn a total of 5,553 from holding International Business Machines or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nayax vs. International Business Machine
Performance |
| Timeline |
| Nayax |
| International Business |
Nayax and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nayax and International Business
The main advantage of trading using opposite Nayax and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.| Nayax vs. The Hackett Group | Nayax vs. CSP Inc | Nayax vs. Formula Systems 1985 | Nayax vs. Information Services Group |
| International Business vs. Small Cap Core | International Business vs. Morningstar Unconstrained Allocation | International Business vs. Mutual Of America | International Business vs. Ep Emerging Markets |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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