Correlation Between KNH Enterprise and Fu Burg
Can any of the company-specific risk be diversified away by investing in both KNH Enterprise and Fu Burg 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 KNH Enterprise and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KNH Enterprise Co and Fu Burg Industrial, you can compare the effects of market volatilities on KNH Enterprise and Fu Burg 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 KNH Enterprise with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNH Enterprise and Fu Burg.
Diversification Opportunities for KNH Enterprise and Fu Burg
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNH and 8929 is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding KNH Enterprise Co and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and KNH Enterprise 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 KNH Enterprise Co are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of KNH Enterprise i.e., KNH Enterprise and Fu Burg go up and down completely randomly.
Pair Corralation between KNH Enterprise and Fu Burg
Assuming the 90 days trading horizon KNH Enterprise Co is expected to under-perform the Fu Burg. But the stock apears to be less risky and, when comparing its historical volatility, KNH Enterprise Co is 3.41 times less risky than Fu Burg. The stock trades about -0.21 of its potential returns per unit of risk. The Fu Burg Industrial is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Fu Burg Industrial on September 1, 2024 and sell it today you would earn a total of 995.00 from holding Fu Burg Industrial or generate 41.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KNH Enterprise Co vs. Fu Burg Industrial
Performance |
| Timeline |
| KNH Enterprise |
| Fu Burg Industrial |
KNH Enterprise and Fu Burg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNH Enterprise and Fu Burg
The main advantage of trading using opposite KNH Enterprise and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNH Enterprise position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.| KNH Enterprise vs. De Licacy Industrial | KNH Enterprise vs. Wisher Industrial Co | KNH Enterprise vs. Tainan Enterprises Co |
| Fu Burg vs. Central Reinsurance Corp | Fu Burg vs. Pacific Hospital Supply | Fu Burg vs. Phytohealth Corp | Fu Burg vs. RiTdisplay Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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