Correlation Between American Commerce and Kone Oyj
Can any of the company-specific risk be diversified away by investing in both American Commerce and Kone Oyj 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 American Commerce and Kone Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Commerce Solutions and Kone Oyj ADR, you can compare the effects of market volatilities on American Commerce and Kone Oyj 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 American Commerce with a short position of Kone Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Commerce and Kone Oyj.
Diversification Opportunities for American Commerce and Kone Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Kone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Commerce Solutions and Kone Oyj ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kone Oyj ADR and American Commerce 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 American Commerce Solutions are associated (or correlated) with Kone Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kone Oyj ADR has no effect on the direction of American Commerce i.e., American Commerce and Kone Oyj go up and down completely randomly.
Pair Corralation between American Commerce and Kone Oyj
If you would invest 2,419 in Kone Oyj ADR on August 25, 2024 and sell it today you would earn a total of 124.00 from holding Kone Oyj ADR or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Commerce Solutions vs. Kone Oyj ADR
Performance |
| Timeline |
| American Commerce |
| Kone Oyj ADR |
American Commerce and Kone Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Commerce and Kone Oyj
The main advantage of trading using opposite American Commerce and Kone Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Commerce position performs unexpectedly, Kone Oyj 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 Kone Oyj will offset losses from the drop in Kone Oyj's long position.| American Commerce vs. Element Solutions | American Commerce vs. Orion Engineered Carbons | American Commerce vs. Minerals Technologies | American Commerce vs. Ingevity Corp |
| Kone Oyj vs. Aumann AG | Kone Oyj vs. Arista Power | Kone Oyj vs. Atlas Copco AB | Kone Oyj vs. American Commerce Solutions |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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