Correlation Between KENTIMA HOLDING and Laureate Education
Can any of the company-specific risk be diversified away by investing in both KENTIMA HOLDING and Laureate Education 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 KENTIMA HOLDING and Laureate Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENTIMA HOLDING AB and Laureate Education, you can compare the effects of market volatilities on KENTIMA HOLDING and Laureate Education 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 KENTIMA HOLDING with a short position of Laureate Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENTIMA HOLDING and Laureate Education.
Diversification Opportunities for KENTIMA HOLDING and Laureate Education
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between KENTIMA and Laureate is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding KENTIMA HOLDING AB and Laureate Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laureate Education and KENTIMA HOLDING 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 KENTIMA HOLDING AB are associated (or correlated) with Laureate Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laureate Education has no effect on the direction of KENTIMA HOLDING i.e., KENTIMA HOLDING and Laureate Education go up and down completely randomly.
Pair Corralation between KENTIMA HOLDING and Laureate Education
Assuming the 90 days horizon KENTIMA HOLDING AB is expected to generate 3.83 times more return on investment than Laureate Education. However, KENTIMA HOLDING is 3.83 times more volatile than Laureate Education. It trades about 0.05 of its potential returns per unit of risk. Laureate Education is currently generating about 0.08 per unit of risk. If you would invest 13.00 in KENTIMA HOLDING AB on September 3, 2024 and sell it today you would earn a total of 2.00 from holding KENTIMA HOLDING AB or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENTIMA HOLDING AB vs. Laureate Education
Performance |
| Timeline |
| KENTIMA HOLDING AB |
| Laureate Education |
KENTIMA HOLDING and Laureate Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENTIMA HOLDING and Laureate Education
The main advantage of trading using opposite KENTIMA HOLDING and Laureate Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENTIMA HOLDING position performs unexpectedly, Laureate Education 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 Laureate Education will offset losses from the drop in Laureate Education's long position.| KENTIMA HOLDING vs. ADRIATIC METALS LS 013355 | KENTIMA HOLDING vs. Pembina Pipeline Corp | KENTIMA HOLDING vs. Lion One Metals | KENTIMA HOLDING vs. Sanyo Chemical Industries |
| Laureate Education vs. SENECA FOODS A | Laureate Education vs. PT Global Mediacom | Laureate Education vs. PREMIER FOODS | Laureate Education vs. United Natural Foods |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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