Correlation Between Kaufman Et and Volkswagen
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Volkswagen 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 Kaufman Et and Volkswagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and Volkswagen AG, you can compare the effects of market volatilities on Kaufman Et and Volkswagen 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 Kaufman Et with a short position of Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Volkswagen.
Diversification Opportunities for Kaufman Et and Volkswagen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kaufman and Volkswagen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG and Kaufman Et 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 Kaufman Et Broad are associated (or correlated) with Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of Kaufman Et i.e., Kaufman Et and Volkswagen go up and down completely randomly.
Pair Corralation between Kaufman Et and Volkswagen
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.91 times more return on investment than Volkswagen. However, Kaufman Et Broad is 1.09 times less risky than Volkswagen. It trades about 0.0 of its potential returns per unit of risk. Volkswagen AG is currently generating about -0.15 per unit of risk. If you would invest 3,090 in Kaufman Et Broad on September 4, 2024 and sell it today you would lose (45.00) from holding Kaufman Et Broad or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Et Broad vs. Volkswagen AG
Performance |
| Timeline |
| Kaufman Et Broad |
| Volkswagen AG |
Kaufman Et and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Volkswagen
The main advantage of trading using opposite Kaufman Et and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Hyundai Motor | Kaufman Et vs. Toyota Motor Corp |
| Volkswagen vs. Kaufman Et Broad | Volkswagen vs. Auto Trader Group | Volkswagen vs. Indutrade AB | Volkswagen vs. National Beverage Corp |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |