Correlation Between ABSOLUTE CLEAN and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both ABSOLUTE CLEAN and KERRY EXPRESS 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 ABSOLUTE CLEAN and KERRY EXPRESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABSOLUTE CLEAN ENERGY and KERRY EXPRESS, you can compare the effects of market volatilities on ABSOLUTE CLEAN and KERRY EXPRESS 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 ABSOLUTE CLEAN with a short position of KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSOLUTE CLEAN and KERRY EXPRESS.
Diversification Opportunities for ABSOLUTE CLEAN and KERRY EXPRESS
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ABSOLUTE and KERRY is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding ABSOLUTE CLEAN ENERGY and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS and ABSOLUTE CLEAN 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 ABSOLUTE CLEAN ENERGY are associated (or correlated) with KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of ABSOLUTE CLEAN i.e., ABSOLUTE CLEAN and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between ABSOLUTE CLEAN and KERRY EXPRESS
Assuming the 90 days trading horizon ABSOLUTE CLEAN ENERGY is expected to generate 0.41 times more return on investment than KERRY EXPRESS. However, ABSOLUTE CLEAN ENERGY is 2.47 times less risky than KERRY EXPRESS. It trades about -0.08 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.13 per unit of risk. If you would invest 188.00 in ABSOLUTE CLEAN ENERGY on September 3, 2024 and sell it today you would lose (52.00) from holding ABSOLUTE CLEAN ENERGY or give up 27.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSOLUTE CLEAN ENERGY vs. KERRY EXPRESS
Performance |
| Timeline |
| ABSOLUTE CLEAN ENERGY |
| KERRY EXPRESS |
ABSOLUTE CLEAN and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSOLUTE CLEAN and KERRY EXPRESS
The main advantage of trading using opposite ABSOLUTE CLEAN and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSOLUTE CLEAN position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| ABSOLUTE CLEAN vs. Absolute Clean Energy | ABSOLUTE CLEAN vs. Super Energy | ABSOLUTE CLEAN vs. TPI Polene Power | ABSOLUTE CLEAN vs. CK Power Public |
| KERRY EXPRESS vs. ABSOLUTE CLEAN ENERGY | KERRY EXPRESS vs. Mena Transport Public | KERRY EXPRESS vs. Ramkhamhaeng Hospital Public | KERRY EXPRESS vs. Sri panwa Hospitality |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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