Correlation Between Khiron Life and Performance Food
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on Khiron Life and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Performance Food.
Diversification Opportunities for Khiron Life and Performance Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Performance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Khiron Life i.e., Khiron Life and Performance Food go up and down completely randomly.
Pair Corralation between Khiron Life and Performance Food
If you would invest 5,050 in Performance Food Group on October 12, 2024 and sell it today you would earn a total of 3,100 from holding Performance Food Group or generate 61.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. Performance Food Group
Performance |
| Timeline |
| Khiron Life Sciences |
| Performance Food |
Khiron Life and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Performance Food
The main advantage of trading using opposite Khiron Life and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Khiron Life vs. IDP EDUCATION LTD | Khiron Life vs. Strategic Education | Khiron Life vs. G8 EDUCATION | Khiron Life vs. Perdoceo Education |
| Performance Food vs. YOOMA WELLNESS INC | Performance Food vs. FEMALE HEALTH | Performance Food vs. Applied Materials | Performance Food vs. US Physical Therapy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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