Correlation Between Wex and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Wex and Ingram Micro 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 Wex and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wex Inc and Ingram Micro Holding, you can compare the effects of market volatilities on Wex and Ingram Micro 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 Wex with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wex and Ingram Micro.
Diversification Opportunities for Wex and Ingram Micro
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wex and Ingram is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wex Inc and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding and Wex 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 Wex Inc are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of Wex i.e., Wex and Ingram Micro go up and down completely randomly.
Pair Corralation between Wex and Ingram Micro
Considering the 90-day investment horizon Wex Inc is expected to under-perform the Ingram Micro. But the stock apears to be less risky and, when comparing its historical volatility, Wex Inc is 1.08 times less risky than Ingram Micro. The stock trades about -0.19 of its potential returns per unit of risk. The Ingram Micro Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,923 in Ingram Micro Holding on August 16, 2025 and sell it today you would earn a total of 84.00 from holding Ingram Micro Holding or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wex Inc vs. Ingram Micro Holding
Performance |
| Timeline |
| Wex Inc |
| Ingram Micro Holding |
Wex and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wex and Ingram Micro
The main advantage of trading using opposite Wex and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wex position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.The idea behind Wex Inc and Ingram Micro Holding 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.| Ingram Micro vs. Dolby Laboratories | Ingram Micro vs. Wex Inc | Ingram Micro vs. ExlService Holdings | Ingram Micro vs. Science Applications International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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