Correlation Between KYUSHU EL and EVN AG
Can any of the company-specific risk be diversified away by investing in both KYUSHU EL and EVN AG 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 EVN AG 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 EVN AG, you can compare the effects of market volatilities on KYUSHU EL and EVN AG 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 EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYUSHU EL and EVN AG.
Diversification Opportunities for KYUSHU EL and EVN AG
Very weak diversification
The 3 months correlation between KYUSHU and EVN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KYUSHU EL PWR and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG 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 EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of KYUSHU EL i.e., KYUSHU EL and EVN AG go up and down completely randomly.
Pair Corralation between KYUSHU EL and EVN AG
Assuming the 90 days horizon KYUSHU EL PWR is expected to under-perform the EVN AG. In addition to that, KYUSHU EL is 2.19 times more volatile than EVN AG. It trades about -0.16 of its total potential returns per unit of risk. EVN AG is currently generating about -0.1 per unit of volatility. If you would invest 2,460 in EVN AG on September 13, 2024 and sell it today you would lose (90.00) from holding EVN AG or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KYUSHU EL PWR vs. EVN AG
Performance |
| Timeline |
| KYUSHU EL PWR |
| EVN AG |
KYUSHU EL and EVN AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYUSHU EL and EVN AG
The main advantage of trading using opposite KYUSHU EL and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYUSHU EL position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG'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 |
| EVN AG vs. Western Copper and | EVN AG vs. BRIT AMER TOBACCO | EVN AG vs. MCEWEN MINING INC | EVN AG vs. Perseus Mining Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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