Correlation Between Nice and IBI Mutual

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

By analyzing existing cross correlation between Nice and IBI Mutual Funds, you can compare the effects of market volatilities on Nice and IBI Mutual 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 Nice with a short position of IBI Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice and IBI Mutual.

Diversification Opportunities for Nice and IBI Mutual

-0.43

Correlation Coefficient

Nice  IBI Mutual

Very good diversification

The 3 months correlation between Nice and IBI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nice and IBI Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBI Mutual Funds and Nice 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 Nice are associated (or correlated) with IBI Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBI Mutual Funds has no effect on the direction of Nice i.e., Nice and IBI Mutual go up and down completely randomly.

Pair Corralation between Nice and IBI Mutual

Assuming the 90 days trading horizon Nice is expected to under-perform the IBI Mutual. In addition to that, Nice is 1.74 times more volatile than IBI Mutual Funds. It trades about -0.28 of its total potential returns per unit of risk. IBI Mutual Funds is currently generating about 0.06 per unit of volatility. If you would invest  6,310  in IBI Mutual Funds on March 12, 2024 and sell it today you would earn a total of  220.00  from holding IBI Mutual Funds or generate 3.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nice  vs.  IBI Mutual Funds

Nice

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nice has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

IBI Mutual Funds

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in IBI Mutual Funds are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, IBI Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nice and IBI Mutual

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

The idea behind Nice and IBI Mutual Funds 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.