Correlation Between KTL GLOBAL and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both KTL GLOBAL and STANLEY ELECTRIC 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 KTL GLOBAL and STANLEY ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTL GLOBAL and STANLEY ELECTRIC CO, you can compare the effects of market volatilities on KTL GLOBAL and STANLEY ELECTRIC 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 KTL GLOBAL with a short position of STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTL GLOBAL and STANLEY ELECTRIC.
Diversification Opportunities for KTL GLOBAL and STANLEY ELECTRIC
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTL and STANLEY is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding KTL GLOBAL and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC and KTL GLOBAL 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 KTL GLOBAL are associated (or correlated) with STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of KTL GLOBAL i.e., KTL GLOBAL and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between KTL GLOBAL and STANLEY ELECTRIC
If you would invest 2,460 in STANLEY ELECTRIC CO on August 26, 2024 and sell it today you would earn a total of 0.00 from holding STANLEY ELECTRIC CO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTL GLOBAL vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| KTL GLOBAL |
| STANLEY ELECTRIC |
KTL GLOBAL and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTL GLOBAL and STANLEY ELECTRIC
The main advantage of trading using opposite KTL GLOBAL and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTL GLOBAL position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC's long position.The idea behind KTL GLOBAL and STANLEY ELECTRIC CO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STANLEY ELECTRIC vs. INFORMATION SVC GRP | STANLEY ELECTRIC vs. NIPPON MEAT PACKERS | STANLEY ELECTRIC vs. CONAGRA FOODS | STANLEY ELECTRIC vs. INDOFOOD AGRI RES |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |