Correlation Between Khiron Life and GBS Software
Can any of the company-specific risk be diversified away by investing in both Khiron Life and GBS Software 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 GBS Software 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 GBS Software AG, you can compare the effects of market volatilities on Khiron Life and GBS Software 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 GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and GBS Software.
Diversification Opportunities for Khiron Life and GBS Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and GBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG 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 GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of Khiron Life i.e., Khiron Life and GBS Software go up and down completely randomly.
Pair Corralation between Khiron Life and GBS Software
If you would invest 274.00 in GBS Software AG on November 4, 2024 and sell it today you would earn a total of 4.00 from holding GBS Software AG or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Khiron Life Sciences vs. GBS Software AG
Performance |
| Timeline |
| Khiron Life Sciences |
| GBS Software AG |
Khiron Life and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and GBS Software
The main advantage of trading using opposite Khiron Life and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software'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 |
| GBS Software vs. SYSTEMAIR AB | GBS Software vs. LAir Liquide SA | GBS Software vs. AIR LIQUIDE ADR | GBS Software vs. Delta Air Lines |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |