Correlation Between IBEX and Value Exchange
Can any of the company-specific risk be diversified away by investing in both IBEX and Value Exchange 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 IBEX and Value Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBEX and Value Exchange International, you can compare the effects of market volatilities on IBEX and Value Exchange 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 IBEX with a short position of Value Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX and Value Exchange.
Diversification Opportunities for IBEX and Value Exchange
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between IBEX and Value is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding IBEX and Value Exchange International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Exchange Inter and IBEX 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 IBEX are associated (or correlated) with Value Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Exchange Inter has no effect on the direction of IBEX i.e., IBEX and Value Exchange go up and down completely randomly.
Pair Corralation between IBEX and Value Exchange
Given the investment horizon of 90 days IBEX is expected to generate 0.25 times more return on investment than Value Exchange. However, IBEX is 3.97 times less risky than Value Exchange. It trades about 0.01 of its potential returns per unit of risk. Value Exchange International is currently generating about -0.1 per unit of risk. If you would invest 2,900 in IBEX on May 21, 2025 and sell it today you would earn a total of 11.00 from holding IBEX or generate 0.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
IBEX vs. Value Exchange International
Performance |
Timeline |
IBEX |
Value Exchange Inter |
IBEX and Value Exchange Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IBEX and Value Exchange
The main advantage of trading using opposite IBEX and Value Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX position performs unexpectedly, Value Exchange 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 Value Exchange will offset losses from the drop in Value Exchange's long position.IBEX vs. Formula Systems 1985 | IBEX vs. CSP Inc | IBEX vs. The Hackett Group | IBEX vs. Information Services Group |
Value Exchange vs. TSS, Common Stock | Value Exchange vs. Usio Inc | Value Exchange vs. IBEX | Value Exchange vs. Taskus Inc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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