Correlation Between Kinnevik Investment and Vinci SA
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Vinci SA 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 Kinnevik Investment and Vinci SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Vinci SA, you can compare the effects of market volatilities on Kinnevik Investment and Vinci SA 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 Kinnevik Investment with a short position of Vinci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Vinci SA.
Diversification Opportunities for Kinnevik Investment and Vinci SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinnevik and Vinci is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Vinci SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Vinci SA go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Vinci SA
If you would invest 7,406 in Kinnevik Investment AB on September 15, 2024 and sell it today you would earn a total of 412.00 from holding Kinnevik Investment AB or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Vinci SA
Performance |
| Timeline |
| Kinnevik Investment |
| Vinci SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinnevik Investment and Vinci SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Vinci SA
The main advantage of trading using opposite Kinnevik Investment and Vinci SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Vinci SA 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 Vinci SA will offset losses from the drop in Vinci SA's long position.| Kinnevik Investment vs. Impax Environmental Markets | Kinnevik Investment vs. JD Sports Fashion | Kinnevik Investment vs. Empire Metals Limited | Kinnevik Investment vs. Europa Metals |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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