Correlation Between Andrew Peller and International Money

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

By analyzing existing cross correlation between Andrew Peller Limited and International Money Express, you can compare the effects of market volatilities on Andrew Peller and International Money 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 Andrew Peller with a short position of International Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrew Peller and International Money.

Diversification Opportunities for Andrew Peller and International Money

-0.29

Correlation Coefficient

Andrew Peller  International Money

Very good diversification

The 3 months correlation between Andrew and International is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Andrew Peller Limited and International Money Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Money and Andrew Peller 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 Andrew Peller Limited are associated (or correlated) with International Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Money has no effect on the direction of Andrew Peller i.e., Andrew Peller and International Money go up and down completely randomly.

Pair Corralation between Andrew Peller and International Money

Assuming the 90 days trading horizon Andrew Peller Limited is expected to generate 1.18 times more return on investment than International Money. However, Andrew Peller is 1.18 times more volatile than International Money Express. It trades about 0.1 of its potential returns per unit of risk. International Money Express is currently generating about -0.03 per unit of risk. If you would invest  390.00  in Andrew Peller Limited on January 26, 2024 and sell it today you would earn a total of  10.00  from holding Andrew Peller Limited or generate 2.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Andrew Peller Limited  vs.  International Money Express

Andrew Peller Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Andrew Peller Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

International Money

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in International Money Express are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, International Money may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Andrew Peller and International Money

The main advantage of trading using opposite Andrew Peller and International Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrew Peller position performs unexpectedly, International Money 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 Money will offset losses from the drop in International Money's long position.

The idea behind Andrew Peller Limited and International Money Express pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.