Correlation Between Kia Corp and Innometry
Can any of the company-specific risk be diversified away by investing in both Kia Corp and Innometry 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 Kia Corp and Innometry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kia Corp and Innometry Co, you can compare the effects of market volatilities on Kia Corp and Innometry 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 Kia Corp with a short position of Innometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kia Corp and Innometry.
Diversification Opportunities for Kia Corp and Innometry
Excellent diversification
The 3 months correlation between Kia and Innometry is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kia Corp and Innometry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innometry and Kia Corp 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 Kia Corp are associated (or correlated) with Innometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innometry has no effect on the direction of Kia Corp i.e., Kia Corp and Innometry go up and down completely randomly.
Pair Corralation between Kia Corp and Innometry
Assuming the 90 days trading horizon Kia Corp is expected to generate 0.77 times more return on investment than Innometry. However, Kia Corp is 1.3 times less risky than Innometry. It trades about 0.06 of its potential returns per unit of risk. Innometry Co is currently generating about -0.02 per unit of risk. If you would invest 7,353,563 in Kia Corp on October 25, 2024 and sell it today you would earn a total of 2,946,437 from holding Kia Corp or generate 40.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kia Corp vs. Innometry Co
Performance |
| Timeline |
| Kia Corp |
| Innometry |
Kia Corp and Innometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kia Corp and Innometry
The main advantage of trading using opposite Kia Corp and Innometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kia Corp position performs unexpectedly, Innometry 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 Innometry will offset losses from the drop in Innometry's long position.| Kia Corp vs. Daou Technology | Kia Corp vs. Eugene Technology CoLtd | Kia Corp vs. Digital Imaging Technology | Kia Corp vs. AeroSpace Technology of |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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