Correlation Between Interactive Brokers and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers and FactSet Research 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 Interactive Brokers and FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and FactSet Research Systems, you can compare the effects of market volatilities on Interactive Brokers and FactSet Research 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 Interactive Brokers with a short position of FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and FactSet Research.
Diversification Opportunities for Interactive Brokers and FactSet Research
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Interactive and FactSet is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems and Interactive Brokers 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 Interactive Brokers Group are associated (or correlated) with FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Interactive Brokers i.e., Interactive Brokers and FactSet Research go up and down completely randomly.
Pair Corralation between Interactive Brokers and FactSet Research
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 1.13 times more return on investment than FactSet Research. However, Interactive Brokers is 1.13 times more volatile than FactSet Research Systems. It trades about 0.16 of its potential returns per unit of risk. FactSet Research Systems is currently generating about -0.22 per unit of risk. If you would invest 11,143 in Interactive Brokers Group on January 27, 2024 and sell it today you would earn a total of 591.00 from holding Interactive Brokers Group or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. FactSet Research Systems
Performance |
| Timeline |
| Interactive Brokers |
| FactSet Research Systems |
Interactive Brokers and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and FactSet Research
The main advantage of trading using opposite Interactive Brokers and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.The idea behind Interactive Brokers Group and FactSet Research Systems 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.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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