Correlation Between Kaufman Et and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on Kaufman Et and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Lendinvest PLC.
Diversification Opportunities for Kaufman Et and Lendinvest PLC
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaufman and Lendinvest is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Kaufman Et i.e., Kaufman Et and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Kaufman Et and Lendinvest PLC
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 1.16 times more return on investment than Lendinvest PLC. However, Kaufman Et is 1.16 times more volatile than Lendinvest PLC. It trades about 0.06 of its potential returns per unit of risk. Lendinvest PLC is currently generating about -0.02 per unit of risk. If you would invest 2,443 in Kaufman Et Broad on September 1, 2024 and sell it today you would earn a total of 690.00 from holding Kaufman Et Broad or generate 28.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kaufman Et Broad vs. Lendinvest PLC
Performance |
| Timeline |
| Kaufman Et Broad |
| Lendinvest PLC |
Kaufman Et and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Lendinvest PLC
The main advantage of trading using opposite Kaufman Et and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC'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 |
| Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Toyota Motor Corp | Lendinvest PLC vs. Reliance Industries Ltd |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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