Correlation Between ELL ENVIRONHLDGS and KONTIGO CARE
Can any of the company-specific risk be diversified away by investing in both ELL ENVIRONHLDGS and KONTIGO CARE 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 ELL ENVIRONHLDGS and KONTIGO CARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELL ENVIRONHLDGS HD 0001 and KONTIGO CARE AB, you can compare the effects of market volatilities on ELL ENVIRONHLDGS and KONTIGO CARE 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 ELL ENVIRONHLDGS with a short position of KONTIGO CARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELL ENVIRONHLDGS and KONTIGO CARE.
Diversification Opportunities for ELL ENVIRONHLDGS and KONTIGO CARE
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ELL and KONTIGO is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ELL ENVIRONHLDGS HD 0001 and KONTIGO CARE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KONTIGO CARE AB and ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS HD 0001 are associated (or correlated) with KONTIGO CARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KONTIGO CARE AB has no effect on the direction of ELL ENVIRONHLDGS i.e., ELL ENVIRONHLDGS and KONTIGO CARE go up and down completely randomly.
Pair Corralation between ELL ENVIRONHLDGS and KONTIGO CARE
Assuming the 90 days horizon ELL ENVIRONHLDGS HD 0001 is expected to under-perform the KONTIGO CARE. But the stock apears to be less risky and, when comparing its historical volatility, ELL ENVIRONHLDGS HD 0001 is 1.91 times less risky than KONTIGO CARE. The stock trades about -0.01 of its potential returns per unit of risk. The KONTIGO CARE AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 21.00 in KONTIGO CARE AB on November 2, 2024 and sell it today you would lose (4.00) from holding KONTIGO CARE AB or give up 19.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
ELL ENVIRONHLDGS HD 0001 vs. KONTIGO CARE AB
Performance |
| Timeline |
| ELL ENVIRONHLDGS |
| KONTIGO CARE AB |
ELL ENVIRONHLDGS and KONTIGO CARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELL ENVIRONHLDGS and KONTIGO CARE
The main advantage of trading using opposite ELL ENVIRONHLDGS and KONTIGO CARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELL ENVIRONHLDGS position performs unexpectedly, KONTIGO CARE 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 KONTIGO CARE will offset losses from the drop in KONTIGO CARE's long position.| ELL ENVIRONHLDGS vs. Gaztransport Technigaz SA | ELL ENVIRONHLDGS vs. EVS Broadcast Equipment | ELL ENVIRONHLDGS vs. MACOM Technology Solutions | ELL ENVIRONHLDGS vs. NAGOYA RAILROAD |
| KONTIGO CARE vs. Apollo Investment Corp | KONTIGO CARE vs. PennyMac Mortgage Investment | KONTIGO CARE vs. Spirent Communications plc | KONTIGO CARE vs. Singapore Telecommunications Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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