Correlation Between Arbor Technology and La Kaffa
Can any of the company-specific risk be diversified away by investing in both Arbor Technology and La Kaffa 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 Arbor Technology and La Kaffa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Technology and La Kaffa International, you can compare the effects of market volatilities on Arbor Technology and La Kaffa 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 Arbor Technology with a short position of La Kaffa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Technology and La Kaffa.
Diversification Opportunities for Arbor Technology and La Kaffa
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Arbor and 2732 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Technology and La Kaffa International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Kaffa International and Arbor Technology 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 Arbor Technology are associated (or correlated) with La Kaffa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Kaffa International has no effect on the direction of Arbor Technology i.e., Arbor Technology and La Kaffa go up and down completely randomly.
Pair Corralation between Arbor Technology and La Kaffa
Assuming the 90 days trading horizon Arbor Technology is expected to generate 2.66 times more return on investment than La Kaffa. However, Arbor Technology is 2.66 times more volatile than La Kaffa International. It trades about 0.21 of its potential returns per unit of risk. La Kaffa International is currently generating about 0.09 per unit of risk. If you would invest 4,060 in Arbor Technology on September 2, 2024 and sell it today you would earn a total of 530.00 from holding Arbor Technology or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Technology vs. La Kaffa International
Performance |
| Timeline |
| Arbor Technology |
| La Kaffa International |
Arbor Technology and La Kaffa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Technology and La Kaffa
The main advantage of trading using opposite Arbor Technology and La Kaffa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Technology position performs unexpectedly, La Kaffa 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 La Kaffa will offset losses from the drop in La Kaffa's long position.| Arbor Technology vs. Catcher Technology Co | Arbor Technology vs. Darfon Electronics Corp | Arbor Technology vs. Digital China Holdings |
| La Kaffa vs. Arbor Technology | La Kaffa vs. MedFirst Healthcare Services | La Kaffa vs. Integrated Service Technology | La Kaffa vs. STL Technology Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |