Correlation Between KYUSHU EL and CIA ENGER
Can any of the company-specific risk be diversified away by investing in both KYUSHU EL and CIA ENGER 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 KYUSHU EL and CIA ENGER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KYUSHU EL PWR and CIA ENGER ADR, you can compare the effects of market volatilities on KYUSHU EL and CIA ENGER 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 KYUSHU EL with a short position of CIA ENGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYUSHU EL and CIA ENGER.
Diversification Opportunities for KYUSHU EL and CIA ENGER
Very good diversification
The 3 months correlation between KYUSHU and CIA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding KYUSHU EL PWR and CIA ENGER ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIA ENGER ADR and KYUSHU EL 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 KYUSHU EL PWR are associated (or correlated) with CIA ENGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIA ENGER ADR has no effect on the direction of KYUSHU EL i.e., KYUSHU EL and CIA ENGER go up and down completely randomly.
Pair Corralation between KYUSHU EL and CIA ENGER
Assuming the 90 days horizon KYUSHU EL PWR is expected to under-perform the CIA ENGER. In addition to that, KYUSHU EL is 5.76 times more volatile than CIA ENGER ADR. It trades about -0.16 of its total potential returns per unit of risk. CIA ENGER ADR is currently generating about 0.0 per unit of volatility. If you would invest 214.00 in CIA ENGER ADR on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CIA ENGER ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KYUSHU EL PWR vs. CIA ENGER ADR
Performance |
| Timeline |
| KYUSHU EL PWR |
| CIA ENGER ADR |
KYUSHU EL and CIA ENGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYUSHU EL and CIA ENGER
The main advantage of trading using opposite KYUSHU EL and CIA ENGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYUSHU EL position performs unexpectedly, CIA ENGER 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 CIA ENGER will offset losses from the drop in CIA ENGER's long position.| KYUSHU EL vs. JSC Halyk bank | KYUSHU EL vs. QBE Insurance Group | KYUSHU EL vs. VIRG NATL BANKSH | KYUSHU EL vs. MBANK |
| CIA ENGER vs. Highlight Communications AG | CIA ENGER vs. Singapore Telecommunications Limited | CIA ENGER vs. Shenandoah Telecommunications | CIA ENGER vs. BORR DRILLING NEW |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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