Correlation Between INTERNATIONAL ENERGY and MULTI TREX

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

By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and MULTI TREX INTEGRATED FOODS, you can compare the effects of market volatilities on INTERNATIONAL ENERGY and MULTI TREX 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 INTERNATIONAL ENERGY with a short position of MULTI TREX. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and MULTI TREX.

Diversification Opportunities for INTERNATIONAL ENERGY and MULTI TREX

0.0

Correlation Coefficient

INTERNATIONAL ENERGY  MULTI TREX

Pay attention - limited upside

The 3 months correlation between INTERNATIONAL and MULTI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE and MULTI TREX INTEGRATED FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI TREX INTEGRATED and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY INSURANCE are associated (or correlated) with MULTI TREX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI TREX INTEGRATED has no effect on the direction of INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and MULTI TREX go up and down completely randomly.

Pair Corralation between INTERNATIONAL ENERGY and MULTI TREX

If you would invest  138.00  in INTERNATIONAL ENERGY INSURANCE on May 4, 2025 and sell it today you would earn a total of  75.00  from holding INTERNATIONAL ENERGY INSURANCE or generate 54.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

INTERNATIONAL ENERGY INSURANCE  vs.  MULTI TREX INTEGRATED FOODS

INTERNATIONAL ENERGY

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in INTERNATIONAL ENERGY INSURANCE are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, INTERNATIONAL ENERGY reported solid returns over the last few months and may actually be approaching a breakup point.

MULTI TREX INTEGRATED

Risk-Adjusted Performance

Very Weak

Over the last 90 days MULTI TREX INTEGRATED FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, MULTI TREX is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with INTERNATIONAL ENERGY and MULTI TREX

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

The idea behind INTERNATIONAL ENERGY INSURANCE and MULTI TREX INTEGRATED FOODS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.