Correlation Between Multi Manager and International Business
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By analyzing existing cross correlation between Multi Manager Inv and International Business Machines, you can compare the effects of market volatilities on Multi Manager 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 Multi Manager with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and International Business.
Diversification Opportunities for Multi Manager and International Business
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Multi and International is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Inv and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and Multi Manager 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 Multi Manager Inv 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 Multi Manager i.e., Multi Manager and International Business go up and down completely randomly.
Pair Corralation between Multi Manager and International Business
Assuming the 90 days trading horizon Multi Manager Inv is expected to under-perform the International Business. But the stock apears to be less risky and, when comparing its historical volatility, Multi Manager Inv is 1.73 times less risky than International Business. The stock trades about -0.58 of its potential returns per unit of risk. The International Business Machines is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 18,879 in International Business Machines on January 24, 2024 and sell it today you would lose (689.00) from holding International Business Machines or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 15.0% |
| Values | Daily Returns |
Multi Manager Inv vs. International Business Machine
Performance |
| Timeline |
| Multi Manager Inv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| International Business |
Multi Manager and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and International Business
The main advantage of trading using opposite Multi Manager and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager 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.| Multi Manager vs. Novo Nordisk AS | Multi Manager vs. Nordea Bank Abp | Multi Manager vs. DSV Panalpina AS | Multi Manager vs. AP Mller |
| International Business vs. FiscalNote Holdings | International Business vs. Innodata | International Business vs. Aurora Innovation | International Business vs. Conduent |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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