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

IBEX  Value Exchange

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

IBEX

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IBEX are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, IBEX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Value Exchange Inter

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Exchange International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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.

The idea behind IBEX and Value Exchange International 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.