Correlation Between Sumitomo Rubber and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Sumitomo Rubber and Khiron Life 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 Sumitomo Rubber and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Rubber Industries and Khiron Life Sciences, you can compare the effects of market volatilities on Sumitomo Rubber and Khiron Life 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 Sumitomo Rubber with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Rubber and Khiron Life.
Diversification Opportunities for Sumitomo Rubber and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumitomo and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Rubber Industries and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and Sumitomo Rubber 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 Sumitomo Rubber Industries are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Sumitomo Rubber i.e., Sumitomo Rubber and Khiron Life go up and down completely randomly.
Pair Corralation between Sumitomo Rubber and Khiron Life
If you would invest 1,050 in Sumitomo Rubber Industries on November 7, 2024 and sell it today you would earn a total of 60.00 from holding Sumitomo Rubber Industries or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sumitomo Rubber Industries vs. Khiron Life Sciences
Performance |
| Timeline |
| Sumitomo Rubber Indu |
| Khiron Life Sciences |
Sumitomo Rubber and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Rubber and Khiron Life
The main advantage of trading using opposite Sumitomo Rubber and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Rubber position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| Sumitomo Rubber vs. Planet Fitness | Sumitomo Rubber vs. Kingdee International Software | Sumitomo Rubber vs. VITEC SOFTWARE GROUP | Sumitomo Rubber vs. NAKED WINES PLC |
| Khiron Life vs. ARDAGH METAL PACDL 0001 | Khiron Life vs. ZURICH INSURANCE GROUP | Khiron Life vs. Fortescue Metals Group | Khiron Life vs. Direct Line Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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