Correlation Between EVS Broadcast and Kaufman Broad
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Kaufman Broad 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 EVS Broadcast and Kaufman Broad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Kaufman Broad SA, you can compare the effects of market volatilities on EVS Broadcast and Kaufman Broad 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 EVS Broadcast with a short position of Kaufman Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Kaufman Broad.
Diversification Opportunities for EVS Broadcast and Kaufman Broad
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EVS and Kaufman is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Kaufman Broad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Broad SA and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with Kaufman Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Broad SA has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Kaufman Broad go up and down completely randomly.
Pair Corralation between EVS Broadcast and Kaufman Broad
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.83 times more return on investment than Kaufman Broad. However, EVS Broadcast Equipment is 1.21 times less risky than Kaufman Broad. It trades about 0.06 of its potential returns per unit of risk. Kaufman Broad SA is currently generating about 0.04 per unit of risk. If you would invest 1,965 in EVS Broadcast Equipment on October 13, 2024 and sell it today you would earn a total of 1,100 from holding EVS Broadcast Equipment or generate 55.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Kaufman Broad SA
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Kaufman Broad SA |
EVS Broadcast and Kaufman Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Kaufman Broad
The main advantage of trading using opposite EVS Broadcast and Kaufman Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Kaufman Broad 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 Kaufman Broad will offset losses from the drop in Kaufman Broad's long position.| EVS Broadcast vs. CanSino Biologics | EVS Broadcast vs. SPARTAN STORES | EVS Broadcast vs. GWILLI FOOD | EVS Broadcast vs. PICKN PAY STORES |
| Kaufman Broad vs. The Trade Desk | Kaufman Broad vs. TRADEGATE | Kaufman Broad vs. MOVIE GAMES SA | Kaufman Broad vs. BORR DRILLING NEW |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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