Correlation Between MEBUKI FINANCIAL and KWS SAAT
Can any of the company-specific risk be diversified away by investing in both MEBUKI FINANCIAL and KWS SAAT 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 MEBUKI FINANCIAL and KWS SAAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEBUKI FINANCIAL GROUP and KWS SAAT SE, you can compare the effects of market volatilities on MEBUKI FINANCIAL and KWS SAAT 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 MEBUKI FINANCIAL with a short position of KWS SAAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEBUKI FINANCIAL and KWS SAAT.
Diversification Opportunities for MEBUKI FINANCIAL and KWS SAAT
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEBUKI and KWS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MEBUKI FINANCIAL GROUP and KWS SAAT SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWS SAAT SE and MEBUKI FINANCIAL 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 MEBUKI FINANCIAL GROUP are associated (or correlated) with KWS SAAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWS SAAT SE has no effect on the direction of MEBUKI FINANCIAL i.e., MEBUKI FINANCIAL and KWS SAAT go up and down completely randomly.
Pair Corralation between MEBUKI FINANCIAL and KWS SAAT
Assuming the 90 days horizon MEBUKI FINANCIAL GROUP is expected to generate 1.33 times more return on investment than KWS SAAT. However, MEBUKI FINANCIAL is 1.33 times more volatile than KWS SAAT SE. It trades about 0.08 of its potential returns per unit of risk. KWS SAAT SE is currently generating about 0.0 per unit of risk. If you would invest 200.00 in MEBUKI FINANCIAL GROUP on August 24, 2024 and sell it today you would earn a total of 194.00 from holding MEBUKI FINANCIAL GROUP or generate 97.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MEBUKI FINANCIAL GROUP vs. KWS SAAT SE
Performance |
Timeline |
MEBUKI FINANCIAL |
KWS SAAT SE |
MEBUKI FINANCIAL and KWS SAAT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEBUKI FINANCIAL and KWS SAAT
The main advantage of trading using opposite MEBUKI FINANCIAL and KWS SAAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEBUKI FINANCIAL position performs unexpectedly, KWS SAAT 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 KWS SAAT will offset losses from the drop in KWS SAAT's long position.MEBUKI FINANCIAL vs. SYSTEMAIR AB | MEBUKI FINANCIAL vs. Norwegian Air Shuttle | MEBUKI FINANCIAL vs. AIR LIQUIDE ADR | MEBUKI FINANCIAL vs. MYFAIR GOLD P |
KWS SAAT vs. GALENA MINING LTD | KWS SAAT vs. Spirent Communications plc | KWS SAAT vs. Perseus Mining Limited | KWS SAAT vs. ETFS Coffee ETC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |