Correlation Between Kaufman Et and Givaudan
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Givaudan 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 Givaudan 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 Givaudan SA, you can compare the effects of market volatilities on Kaufman Et and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Givaudan.
Diversification Opportunities for Kaufman Et and Givaudan
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaufman and Givaudan is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Kaufman Et i.e., Kaufman Et and Givaudan go up and down completely randomly.
Pair Corralation between Kaufman Et and Givaudan
Assuming the 90 days trading horizon Kaufman Et Broad is expected to under-perform the Givaudan. In addition to that, Kaufman Et is 1.22 times more volatile than Givaudan SA. It trades about -0.22 of its total potential returns per unit of risk. Givaudan SA is currently generating about -0.2 per unit of volatility. If you would invest 407,650 in Givaudan SA on September 1, 2024 and sell it today you would lose (20,900) from holding Givaudan SA or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kaufman Et Broad vs. Givaudan SA
Performance |
| Timeline |
| Kaufman Et Broad |
| Givaudan SA |
Kaufman Et and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Givaudan
The main advantage of trading using opposite Kaufman Et and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Kaufman Et vs. Vitec Software Group | Kaufman Et vs. Games Workshop Group | Kaufman Et vs. Axway Software SA | Kaufman Et vs. Check Point Software |
| Givaudan vs. Antofagasta PLC | Givaudan vs. Centamin PLC | Givaudan vs. Atalaya Mining | Givaudan vs. Ferrexpo PLC |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |