Correlation Between SCIENCE IN and Knowles
Can any of the company-specific risk be diversified away by investing in both SCIENCE IN and Knowles 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 SCIENCE IN and Knowles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCIENCE IN SPORT and Knowles, you can compare the effects of market volatilities on SCIENCE IN and Knowles 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 SCIENCE IN with a short position of Knowles. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCIENCE IN and Knowles.
Diversification Opportunities for SCIENCE IN and Knowles
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCIENCE and Knowles is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT and Knowles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knowles and SCIENCE IN 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 SCIENCE IN SPORT are associated (or correlated) with Knowles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knowles has no effect on the direction of SCIENCE IN i.e., SCIENCE IN and Knowles go up and down completely randomly.
Pair Corralation between SCIENCE IN and Knowles
Assuming the 90 days horizon SCIENCE IN SPORT is expected to generate 2.17 times more return on investment than Knowles. However, SCIENCE IN is 2.17 times more volatile than Knowles. It trades about 0.1 of its potential returns per unit of risk. Knowles is currently generating about 0.06 per unit of risk. If you would invest 12.00 in SCIENCE IN SPORT on September 15, 2024 and sell it today you would earn a total of 18.00 from holding SCIENCE IN SPORT or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
SCIENCE IN SPORT vs. Knowles
Performance |
| Timeline |
| SCIENCE IN SPORT |
| Knowles |
SCIENCE IN and Knowles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCIENCE IN and Knowles
The main advantage of trading using opposite SCIENCE IN and Knowles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCIENCE IN position performs unexpectedly, Knowles 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 Knowles will offset losses from the drop in Knowles' long position.| SCIENCE IN vs. Hormel Foods | SCIENCE IN vs. Superior Plus Corp | SCIENCE IN vs. SIVERS SEMICONDUCTORS AB | SCIENCE IN vs. NorAm Drilling AS |
| Knowles vs. SCIENCE IN SPORT | Knowles vs. Strategic Investments AS | Knowles vs. EAT WELL INVESTMENT | Knowles vs. Big 5 Sporting |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |