Correlation Between Kinko Optical and Carnival Industrial
Can any of the company-specific risk be diversified away by investing in both Kinko Optical and Carnival Industrial 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 Kinko Optical and Carnival Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinko Optical Co and Carnival Industrial Corp, you can compare the effects of market volatilities on Kinko Optical and Carnival Industrial 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 Kinko Optical with a short position of Carnival Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinko Optical and Carnival Industrial.
Diversification Opportunities for Kinko Optical and Carnival Industrial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinko and Carnival is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kinko Optical Co and Carnival Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnival Industrial Corp and Kinko Optical 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 Kinko Optical Co are associated (or correlated) with Carnival Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnival Industrial Corp has no effect on the direction of Kinko Optical i.e., Kinko Optical and Carnival Industrial go up and down completely randomly.
Pair Corralation between Kinko Optical and Carnival Industrial
Assuming the 90 days trading horizon Kinko Optical Co is expected to under-perform the Carnival Industrial. In addition to that, Kinko Optical is 2.09 times more volatile than Carnival Industrial Corp. It trades about -0.08 of its total potential returns per unit of risk. Carnival Industrial Corp is currently generating about -0.05 per unit of volatility. If you would invest 1,000.00 in Carnival Industrial Corp on September 1, 2024 and sell it today you would lose (7.00) from holding Carnival Industrial Corp or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kinko Optical Co vs. Carnival Industrial Corp
Performance |
| Timeline |
| Kinko Optical |
| Carnival Industrial Corp |
Kinko Optical and Carnival Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinko Optical and Carnival Industrial
The main advantage of trading using opposite Kinko Optical and Carnival Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinko Optical position performs unexpectedly, Carnival Industrial 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 Carnival Industrial will offset losses from the drop in Carnival Industrial's long position.The idea behind Kinko Optical Co and Carnival Industrial Corp 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.| Carnival Industrial vs. Chaintech Technology Corp | Carnival Industrial vs. AVerMedia Technologies | Carnival Industrial vs. Avision | Carnival Industrial vs. Clevo Co |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |