Correlation Between Khiron Life and Power Assets
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Power Assets 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 Power Assets 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 Power Assets Holdings, you can compare the effects of market volatilities on Khiron Life and Power Assets 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 Power Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Power Assets.
Diversification Opportunities for Khiron Life and Power Assets
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Power is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Power Assets Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Assets Holdings 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 Power Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Assets Holdings has no effect on the direction of Khiron Life i.e., Khiron Life and Power Assets go up and down completely randomly.
Pair Corralation between Khiron Life and Power Assets
If you would invest 620.00 in Power Assets Holdings on October 15, 2024 and sell it today you would earn a total of 30.00 from holding Power Assets Holdings or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Khiron Life Sciences vs. Power Assets Holdings
Performance |
| Timeline |
| Khiron Life Sciences |
| Power Assets Holdings |
Khiron Life and Power Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Power Assets
The main advantage of trading using opposite Khiron Life and Power Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Power Assets 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 Power Assets will offset losses from the drop in Power Assets' long position.| Khiron Life vs. Tencent Music Entertainment | Khiron Life vs. NetSol Technologies | Khiron Life vs. GigaMedia | Khiron Life vs. SQUIRREL MEDIA SA |
| Power Assets vs. Xiwang Special Steel | Power Assets vs. KOBE STEEL LTD | Power Assets vs. Khiron Life Sciences | Power Assets vs. TRADEDOUBLER AB SK |
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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