Correlation Between IBC Advanced and United Express
Can any of the company-specific risk be diversified away by investing in both IBC Advanced and United Express 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 IBC Advanced and United Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBC Advanced Alloys and United Express, you can compare the effects of market volatilities on IBC Advanced and United Express 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 IBC Advanced with a short position of United Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBC Advanced and United Express.
Diversification Opportunities for IBC Advanced and United Express
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IBC and United is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding IBC Advanced Alloys and United Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Express and IBC Advanced 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 IBC Advanced Alloys are associated (or correlated) with United Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Express has no effect on the direction of IBC Advanced i.e., IBC Advanced and United Express go up and down completely randomly.
Pair Corralation between IBC Advanced and United Express
Assuming the 90 days horizon IBC Advanced Alloys is expected to generate 1.79 times more return on investment than United Express. However, IBC Advanced is 1.79 times more volatile than United Express. It trades about 0.21 of its potential returns per unit of risk. United Express is currently generating about -0.05 per unit of risk. If you would invest 4.00 in IBC Advanced Alloys on August 18, 2025 and sell it today you would earn a total of 9.00 from holding IBC Advanced Alloys or generate 225.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
IBC Advanced Alloys vs. United Express
Performance |
| Timeline |
| IBC Advanced Alloys |
| United Express |
IBC Advanced and United Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBC Advanced and United Express
The main advantage of trading using opposite IBC Advanced and United Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBC Advanced position performs unexpectedly, United Express 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 United Express will offset losses from the drop in United Express' long position.| IBC Advanced vs. Timminco Limited | IBC Advanced vs. TurnOnGreen, | IBC Advanced vs. Omni Lite Industries Canada | IBC Advanced vs. Legend Power Systems |
| United Express vs. Cavitation Techs | United Express vs. Next10 Inc | United Express vs. FBR Limited | United Express vs. IBC Advanced Alloys |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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