Correlation Between MAVEN WIRELESS and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and KRISPY KREME 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 MAVEN WIRELESS and KRISPY KREME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and KRISPY KREME DL 01, you can compare the effects of market volatilities on MAVEN WIRELESS and KRISPY KREME 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 MAVEN WIRELESS with a short position of KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and KRISPY KREME.
Diversification Opportunities for MAVEN WIRELESS and KRISPY KREME
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAVEN and KRISPY is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and KRISPY KREME go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and KRISPY KREME
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the KRISPY KREME. But the stock apears to be less risky and, when comparing its historical volatility, MAVEN WIRELESS SWEDEN is 1.14 times less risky than KRISPY KREME. The stock trades about -0.02 of its potential returns per unit of risk. The KRISPY KREME DL 01 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,228 in KRISPY KREME DL 01 on August 28, 2024 and sell it today you would lose (168.00) from holding KRISPY KREME DL 01 or give up 13.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. KRISPY KREME DL 01
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| KRISPY KREME DL |
MAVEN WIRELESS and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and KRISPY KREME
The main advantage of trading using opposite MAVEN WIRELESS and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| MAVEN WIRELESS vs. Uber Technologies | MAVEN WIRELESS vs. GLG LIFE TECH | MAVEN WIRELESS vs. AAC TECHNOLOGHLDGADR | MAVEN WIRELESS vs. INSURANCE AUST GRP |
| KRISPY KREME vs. Transport International Holdings | KRISPY KREME vs. Salesforce | KRISPY KREME vs. CODERE ONLINE LUX | KRISPY KREME vs. BOS BETTER ONLINE |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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