Correlation Between High Yield and Kornit Digital
Can any of the company-specific risk be diversified away by investing in both High Yield and Kornit Digital 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 High Yield and Kornit Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Kornit Digital, you can compare the effects of market volatilities on High Yield and Kornit Digital 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 High Yield with a short position of Kornit Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Kornit Digital.
Diversification Opportunities for High Yield and Kornit Digital
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between High and Kornit is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Kornit Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kornit Digital and High Yield 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 High Yield Municipal Fund are associated (or correlated) with Kornit Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kornit Digital has no effect on the direction of High Yield i.e., High Yield and Kornit Digital go up and down completely randomly.
Pair Corralation between High Yield and Kornit Digital
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.16 times more return on investment than Kornit Digital. However, High Yield Municipal Fund is 6.43 times less risky than Kornit Digital. It trades about -0.05 of its potential returns per unit of risk. Kornit Digital is currently generating about -0.15 per unit of risk. If you would invest 872.00 in High Yield Municipal Fund on January 17, 2025 and sell it today you would lose (20.00) from holding High Yield Municipal Fund or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Kornit Digital
Performance |
| Timeline |
| High Yield Municipal |
| Kornit Digital |
High Yield and Kornit Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Kornit Digital
The main advantage of trading using opposite High Yield and Kornit Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Kornit Digital 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 Kornit Digital will offset losses from the drop in Kornit Digital's long position.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
| Kornit Digital vs. Middleby Corp | Kornit Digital vs. Enpro Industries | Kornit Digital vs. Kadant Inc | Kornit Digital vs. ITT Inc |
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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