Correlation Between Khiron Life and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Carnegie Clean 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 Khiron Life and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Carnegie Clean Energy, you can compare the effects of market volatilities on Khiron Life and Carnegie Clean 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 Khiron Life with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Carnegie Clean.
Diversification Opportunities for Khiron Life and Carnegie Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Carnegie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of Khiron Life i.e., Khiron Life and Carnegie Clean go up and down completely randomly.
Pair Corralation between Khiron Life and Carnegie Clean
If you would invest 2.04 in Carnegie Clean Energy on November 5, 2024 and sell it today you would earn a total of 0.06 from holding Carnegie Clean Energy or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Khiron Life Sciences vs. Carnegie Clean Energy
Performance |
| Timeline |
| Khiron Life Sciences |
| Carnegie Clean Energy |
Khiron Life and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Carnegie Clean
The main advantage of trading using opposite Khiron Life and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| Khiron Life vs. Take Two Interactive Software | Khiron Life vs. Sumitomo Mitsui Construction | Khiron Life vs. Easy Software AG | Khiron Life vs. Tokyu Construction Co |
| Carnegie Clean vs. Transport International Holdings | Carnegie Clean vs. NTG Nordic Transport | Carnegie Clean vs. Guidewire Software | Carnegie Clean vs. Kingdee International Software |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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