Correlation Between Khiron Life and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both Khiron Life and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on Khiron Life and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and INSURANCE AUST.
Diversification Opportunities for Khiron Life and INSURANCE AUST
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and INSURANCE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of Khiron Life i.e., Khiron Life and INSURANCE AUST go up and down completely randomly.
Pair Corralation between Khiron Life and INSURANCE AUST
If you would invest 510.00 in INSURANCE AUST GRP on November 5, 2024 and sell it today you would earn a total of 35.00 from holding INSURANCE AUST GRP or generate 6.86% 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. INSURANCE AUST GRP
Performance |
| Timeline |
| Khiron Life Sciences |
| INSURANCE AUST GRP |
Khiron Life and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and INSURANCE AUST
The main advantage of trading using opposite Khiron Life and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST'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 |
| INSURANCE AUST vs. AIR PRODCHEMICALS | INSURANCE AUST vs. Mitsui Chemicals | INSURANCE AUST vs. X FAB Silicon Foundries | INSURANCE AUST vs. Mitsubishi Gas Chemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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