Correlation Between PFA Invest and International Business

By analyzing existing cross correlation between PFA Invest Udenlandske and International Business Machines, you can compare the effects of market volatilities on PFA Invest 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 PFA Invest with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFA Invest and International Business.

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Can any of the company-specific risk be diversified away by investing in both PFA Invest 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 PFA Invest and International Business into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for PFA Invest and International Business

-0.32
  Correlation Coefficient
PFA Invest Udenlandske
International Business

Very good diversification

The 3 months correlation between PFIUDO and International is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PFA Invest Udenlandske Obl and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business and PFA Invest 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 PFA Invest Udenlandske 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 PFA Invest i.e. PFA Invest and International Business go up and down completely randomly.

Pair Corralation between PFA Invest and International Business

Assuming the 30 trading days horizon, PFA Invest Udenlandske is expected to generate 0.19 times more return on investment than International Business. However, PFA Invest Udenlandske is 5.33 times less risky than International Business. It trades about 0.22 of its potential returns per unit of risk. International Business Machines is currently generating about 0.0 per unit of risk. If you would invest  9,958  in PFA Invest Udenlandske on June 11, 2020 and sell it today you would earn a total of  142.00  from holding PFA Invest Udenlandske or generate 1.43% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy23.44%
ValuesDaily Returns

PFA Invest Udenlandske Obl  vs.  International Business Machine

 Performance (%) 
      Timeline 
PFA Invest Udenlandske 
00

PFA Invest Risk-Adjusted Performance

Over the last 30 days PFA Invest Udenlandske has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PFA Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
International Business 
00

International Business Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The new stock price chaos, may contribute to medium term losses for the stakeholders.

PFA Invest and International Business Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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