Correlation Between Major Drilling and KSB SE
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By analyzing existing cross correlation between Major Drilling Group and KSB SE Co, you can compare the effects of market volatilities on Major Drilling and KSB SE 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 Major Drilling with a short position of KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Drilling and KSB SE.
Diversification Opportunities for Major Drilling and KSB SE
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Major and KSB is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Major Drilling Group and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB SE and Major Drilling 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 Major Drilling Group are associated (or correlated) with KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of Major Drilling i.e., Major Drilling and KSB SE go up and down completely randomly.
Pair Corralation between Major Drilling and KSB SE
Assuming the 90 days horizon Major Drilling is expected to generate 5.35 times less return on investment than KSB SE. In addition to that, Major Drilling is 1.91 times more volatile than KSB SE Co. It trades about 0.0 of its total potential returns per unit of risk. KSB SE Co is currently generating about 0.05 per unit of volatility. If you would invest 54,379 in KSB SE Co on September 14, 2024 and sell it today you would earn a total of 7,621 from holding KSB SE Co or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Major Drilling Group vs. KSB SE Co
Performance |
| Timeline |
| Major Drilling Group |
| KSB SE |
Major Drilling and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Drilling and KSB SE
The main advantage of trading using opposite Major Drilling and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Drilling position performs unexpectedly, KSB SE 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 KSB SE will offset losses from the drop in KSB SE's long position.| Major Drilling vs. Goosehead Insurance | Major Drilling vs. International Game Technology | Major Drilling vs. FUTURE GAMING GRP | Major Drilling vs. Zurich Insurance Group |
| KSB SE vs. TYSON FOODS A | KSB SE vs. NorAm Drilling AS | KSB SE vs. Major Drilling Group | KSB SE vs. SENECA FOODS A |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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