Correlation Between MYFAIR GOLD and KCE EL
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD and KCE EL 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 MYFAIR GOLD and KCE EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and KCE EL PCL, you can compare the effects of market volatilities on MYFAIR GOLD and KCE EL 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 MYFAIR GOLD with a short position of KCE EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and KCE EL.
Diversification Opportunities for MYFAIR GOLD and KCE EL
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between MYFAIR and KCE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and KCE EL PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE EL PCL and MYFAIR GOLD 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 MYFAIR GOLD P are associated (or correlated) with KCE EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE EL PCL has no effect on the direction of MYFAIR GOLD i.e., MYFAIR GOLD and KCE EL go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and KCE EL
Assuming the 90 days horizon MYFAIR GOLD P is expected to generate 1.47 times more return on investment than KCE EL. However, MYFAIR GOLD is 1.47 times more volatile than KCE EL PCL. It trades about -0.04 of its potential returns per unit of risk. KCE EL PCL is currently generating about -0.42 per unit of risk. If you would invest 131.00 in MYFAIR GOLD P on September 5, 2024 and sell it today you would lose (9.00) from holding MYFAIR GOLD P or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. KCE EL PCL
Performance |
| Timeline |
| MYFAIR GOLD P |
| KCE EL PCL |
MYFAIR GOLD and KCE EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and KCE EL
The main advantage of trading using opposite MYFAIR GOLD and KCE EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD position performs unexpectedly, KCE EL 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 KCE EL will offset losses from the drop in KCE EL's long position.| MYFAIR GOLD vs. Superior Plus Corp | MYFAIR GOLD vs. NMI Holdings | MYFAIR GOLD vs. Origin Agritech | MYFAIR GOLD vs. SIVERS SEMICONDUCTORS AB |
| KCE EL vs. CDN IMPERIAL BANK | KCE EL vs. Norwegian Air Shuttle | KCE EL vs. MYFAIR GOLD P | KCE EL vs. SEALED AIR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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