Correlation Between SANOK RUBBER and KB HOME
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and KB HOME 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 SANOK RUBBER and KB HOME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and KB HOME, you can compare the effects of market volatilities on SANOK RUBBER and KB HOME 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 SANOK RUBBER with a short position of KB HOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and KB HOME.
Diversification Opportunities for SANOK RUBBER and KB HOME
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SANOK and KBH is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and KB HOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB HOME and SANOK 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 SANOK RUBBER ZY are associated (or correlated) with KB HOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB HOME has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and KB HOME go up and down completely randomly.
Pair Corralation between SANOK RUBBER and KB HOME
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 1.28 times more return on investment than KB HOME. However, SANOK RUBBER is 1.28 times more volatile than KB HOME. It trades about 0.09 of its potential returns per unit of risk. KB HOME is currently generating about 0.07 per unit of risk. If you would invest 167.00 in SANOK RUBBER ZY on October 16, 2024 and sell it today you would earn a total of 315.00 from holding SANOK RUBBER ZY or generate 188.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. KB HOME
Performance |
| Timeline |
| SANOK RUBBER ZY |
| KB HOME |
SANOK RUBBER and KB HOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and KB HOME
The main advantage of trading using opposite SANOK RUBBER and KB HOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, KB HOME 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 KB HOME will offset losses from the drop in KB HOME's long position.| SANOK RUBBER vs. NIGHTINGALE HEALTH EO | SANOK RUBBER vs. MEDCAW INVESTMENTS LS 01 | SANOK RUBBER vs. ECHO INVESTMENT ZY | SANOK RUBBER vs. PURETECH HEALTH PLC |
| KB HOME vs. SANOK RUBBER ZY | KB HOME vs. H2O Retailing | KB HOME vs. Retail Estates NV | KB HOME vs. FAST RETAIL ADR |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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