Correlation Between Khiron Life and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Khiron Life and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on Khiron Life and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and FANDIFI TECHNOLOGY.
Diversification Opportunities for Khiron Life and FANDIFI TECHNOLOGY
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Khiron and FANDIFI is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of Khiron Life i.e., Khiron Life and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between Khiron Life and FANDIFI TECHNOLOGY
Assuming the 90 days trading horizon Khiron Life Sciences is expected to under-perform the FANDIFI TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Khiron Life Sciences is 7.07 times less risky than FANDIFI TECHNOLOGY. The stock trades about -0.04 of its potential returns per unit of risk. The FANDIFI TECHNOLOGY P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3.20 in FANDIFI TECHNOLOGY P on October 13, 2024 and sell it today you would lose (3.15) from holding FANDIFI TECHNOLOGY P or give up 98.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| Khiron Life Sciences |
| FANDIFI TECHNOLOGY |
Khiron Life and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and FANDIFI TECHNOLOGY
The main advantage of trading using opposite Khiron Life and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| Khiron Life vs. Universal Insurance Holdings | Khiron Life vs. SBI Insurance Group | Khiron Life vs. REVO INSURANCE SPA | Khiron Life vs. Sinopec Shanghai Petrochemical |
| FANDIFI TECHNOLOGY vs. Rayonier Advanced Materials | FANDIFI TECHNOLOGY vs. Pembina Pipeline Corp | FANDIFI TECHNOLOGY vs. Khiron Life Sciences | FANDIFI TECHNOLOGY vs. PT Steel Pipe |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |