Correlation Between PF Atlantic and International Business
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By analyzing existing cross correlation between PF Atlantic Petroleum and International Business Machines, you can compare the effects of market volatilities on PF Atlantic 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 PF Atlantic with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of PF Atlantic and International Business.
Diversification Opportunities for PF Atlantic and International Business
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATLA-DKK and International is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PF Atlantic Petroleum and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and PF Atlantic 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 PF Atlantic Petroleum 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 PF Atlantic i.e., PF Atlantic and International Business go up and down completely randomly.
Pair Corralation between PF Atlantic and International Business
Assuming the 90 days trading horizon PF Atlantic Petroleum is expected to under-perform the International Business. In addition to that, PF Atlantic is 4.2 times more volatile than International Business Machines. It trades about -0.15 of its total potential returns per unit of risk. International Business Machines is currently generating about -0.15 per unit of volatility. If you would invest 18,879 in International Business Machines on January 25, 2024 and sell it today you would lose (548.00) from holding International Business Machines or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
PF Atlantic Petroleum vs. International Business Machine
Performance |
| Timeline |
| PF Atlantic Petroleum |
| International Business |
PF Atlantic and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PF Atlantic and International Business
The main advantage of trading using opposite PF Atlantic and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PF Atlantic 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.| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. Orphazyme AS | PF Atlantic vs. TORM plc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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