Correlation Between Acast AB and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Acast AB and Goodbye Kansas 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 Acast AB and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acast AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Acast AB and Goodbye Kansas 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 Acast AB with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acast AB and Goodbye Kansas.
Diversification Opportunities for Acast AB and Goodbye Kansas
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acast and Goodbye is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Acast AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Acast AB 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 Acast AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Acast AB i.e., Acast AB and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Acast AB and Goodbye Kansas
Assuming the 90 days trading horizon Acast AB is expected to generate 1.2 times less return on investment than Goodbye Kansas. But when comparing it to its historical volatility, Acast AB is 6.04 times less risky than Goodbye Kansas. It trades about 0.07 of its potential returns per unit of risk. Goodbye Kansas Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21,098 in Goodbye Kansas Group on August 25, 2024 and sell it today you would lose (20,959) from holding Goodbye Kansas Group or give up 99.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acast AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| Acast AB |
| Goodbye Kansas Group |
Acast AB and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acast AB and Goodbye Kansas
The main advantage of trading using opposite Acast AB and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acast AB position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| Acast AB vs. Cint Group AB | Acast AB vs. Storytel AB | Acast AB vs. Stillfront Group AB | Acast AB vs. Thunderful Group AB |
| Goodbye Kansas vs. Raketech Group Holding | Goodbye Kansas vs. FormPipe Software AB | Goodbye Kansas vs. New Nordic Healthbrands | Goodbye Kansas vs. Sdiptech AB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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