Correlation Between Kaufman Et and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Kaufman Et and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Uniper SE.
Diversification Opportunities for Kaufman Et and Uniper SE
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaufman and Uniper is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Kaufman Et i.e., Kaufman Et and Uniper SE go up and down completely randomly.
Pair Corralation between Kaufman Et and Uniper SE
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.79 times more return on investment than Uniper SE. However, Kaufman Et Broad is 1.26 times less risky than Uniper SE. It trades about 0.08 of its potential returns per unit of risk. Uniper SE is currently generating about -0.04 per unit of risk. If you would invest 2,448 in Kaufman Et Broad on September 1, 2024 and sell it today you would earn a total of 685.00 from holding Kaufman Et Broad or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.95% |
| Values | Daily Returns |
Kaufman Et Broad vs. Uniper SE
Performance |
| Timeline |
| Kaufman Et Broad |
| Uniper SE |
Kaufman Et and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Uniper SE
The main advantage of trading using opposite Kaufman Et and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE'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 |
| Uniper SE vs. Zoom Video Communications | Uniper SE vs. Iron Mountain | Uniper SE vs. BE Semiconductor Industries | Uniper SE vs. Cairo Communication SpA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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