Correlation Between Kaufman Broad and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Kaufman Broad and EVS Broadcast 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 Kaufman Broad and EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Broad SA and EVS Broadcast Equipment, you can compare the effects of market volatilities on Kaufman Broad and EVS Broadcast 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 Kaufman Broad with a short position of EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and EVS Broadcast.
Diversification Opportunities for Kaufman Broad and EVS Broadcast
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaufman and EVS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment and Kaufman Broad 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 Kaufman Broad SA are associated (or correlated) with EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Kaufman Broad i.e., Kaufman Broad and EVS Broadcast go up and down completely randomly.
Pair Corralation between Kaufman Broad and EVS Broadcast
Assuming the 90 days horizon Kaufman Broad is expected to generate 1.39 times less return on investment than EVS Broadcast. In addition to that, Kaufman Broad is 1.21 times more volatile than EVS Broadcast Equipment. It trades about 0.04 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.06 per unit of volatility. If you would invest 1,965 in EVS Broadcast Equipment on October 13, 2024 and sell it today you would earn a total of 1,100 from holding EVS Broadcast Equipment or generate 55.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kaufman Broad SA vs. EVS Broadcast Equipment
Performance |
| Timeline |
| Kaufman Broad SA |
| EVS Broadcast Equipment |
Kaufman Broad and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Broad and EVS Broadcast
The main advantage of trading using opposite Kaufman Broad and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| Kaufman Broad vs. The Trade Desk | Kaufman Broad vs. TRADEGATE | Kaufman Broad vs. MOVIE GAMES SA | Kaufman Broad vs. BORR DRILLING NEW |
| EVS Broadcast vs. CanSino Biologics | EVS Broadcast vs. SPARTAN STORES | EVS Broadcast vs. GWILLI FOOD | EVS Broadcast vs. PICKN PAY STORES |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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