Correlation Between Ametek and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Ametek and Kinnevik Investment 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 Ametek and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ametek Inc and Kinnevik Investment AB, you can compare the effects of market volatilities on Ametek and Kinnevik Investment 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 Ametek with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ametek and Kinnevik Investment.
Diversification Opportunities for Ametek and Kinnevik Investment
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ametek and Kinnevik is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Ametek 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 Ametek Inc are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Ametek i.e., Ametek and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Ametek and Kinnevik Investment
Assuming the 90 days trading horizon Ametek Inc is expected to generate 0.58 times more return on investment than Kinnevik Investment. However, Ametek Inc is 1.71 times less risky than Kinnevik Investment. It trades about 0.07 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.04 per unit of risk. If you would invest 15,765 in Ametek Inc on September 4, 2024 and sell it today you would earn a total of 3,769 from holding Ametek Inc or generate 23.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Ametek Inc vs. Kinnevik Investment AB
Performance |
| Timeline |
| Ametek Inc |
| Kinnevik Investment |
Ametek and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ametek and Kinnevik Investment
The main advantage of trading using opposite Ametek and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Ametek vs. Sydbank | Ametek vs. Bank of Ireland | Ametek vs. Discover Financial Services | Ametek vs. Batm Advanced Communications |
| Kinnevik Investment vs. Central Asia Metals | Kinnevik Investment vs. Ecclesiastical Insurance Office | Kinnevik Investment vs. European Metals Holdings | Kinnevik Investment vs. AMG Advanced Metallurgical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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