Correlation Between Kaufman Et and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Oakley Capital 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 Oakley Capital 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 Oakley Capital Investments, you can compare the effects of market volatilities on Kaufman Et and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Oakley Capital.
Diversification Opportunities for Kaufman Et and Oakley Capital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaufman and Oakley is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Kaufman Et i.e., Kaufman Et and Oakley Capital go up and down completely randomly.
Pair Corralation between Kaufman Et and Oakley Capital
Assuming the 90 days trading horizon Kaufman Et Broad is expected to under-perform the Oakley Capital. In addition to that, Kaufman Et is 2.6 times more volatile than Oakley Capital Investments. It trades about -0.26 of its total potential returns per unit of risk. Oakley Capital Investments is currently generating about -0.31 per unit of volatility. If you would invest 49,600 in Oakley Capital Investments on September 3, 2024 and sell it today you would lose (1,550) from holding Oakley Capital Investments or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Et Broad vs. Oakley Capital Investments
Performance |
| Timeline |
| Kaufman Et Broad |
| Oakley Capital Inves |
Kaufman Et and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Oakley Capital
The main advantage of trading using opposite Kaufman Et and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Kaufman Et vs. Catalyst Media Group | Kaufman Et vs. CATLIN GROUP | Kaufman Et vs. RTW Venture Fund | Kaufman Et vs. Secure Property Development |
| Oakley Capital vs. Universal Display Corp | Oakley Capital vs. Central Asia Metals | Oakley Capital vs. Kaufman Et Broad | Oakley Capital vs. Roadside Real Estate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |