International Business Correlations

IBM Stock  USD 187.45  1.64  0.88%   
The current 90-days correlation between International Business and Infosys Ltd ADR is 0.3 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as International Business moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if International Business Machines moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

International Business Correlation With Market

Very weak diversification

The correlation between International Business Machine and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in International Business Machines. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with International Stock

  0.76IT GartnerPairCorr
  0.64GDYN Grid Dynamics Holdings Tech BoostPairCorr

Moving against International Stock

  0.64WAVD Wavedancer Tech BoostPairCorr
  0.47GMM Global Mofy MetaversePairCorr
  0.34LDOS Leidos HoldingsPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
KDFIS
NOTEINFY
ITCTSH
JKHYCTSH
NOTECTSH
ITJKHY
  
High negative correlations   
CDWKD
CDWFIS
CDWNOTE
CDWINFY
ITKD

Risk-Adjusted Indicators

There is a big difference between International Stock performing well and International Business Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze International Business' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.