Correlation Between ACS Actividades and KBR
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and KBR 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 ACS Actividades and KBR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACS Actividades de and KBR Inc, you can compare the effects of market volatilities on ACS Actividades and KBR 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 ACS Actividades with a short position of KBR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and KBR.
Diversification Opportunities for ACS Actividades and KBR
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ACS and KBR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and KBR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBR Inc and ACS Actividades 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 ACS Actividades de are associated (or correlated) with KBR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBR Inc has no effect on the direction of ACS Actividades i.e., ACS Actividades and KBR go up and down completely randomly.
Pair Corralation between ACS Actividades and KBR
Assuming the 90 days horizon ACS Actividades de is expected to generate 0.81 times more return on investment than KBR. However, ACS Actividades de is 1.23 times less risky than KBR. It trades about 0.06 of its potential returns per unit of risk. KBR Inc is currently generating about -0.02 per unit of risk. If you would invest 4,122 in ACS Actividades de on August 29, 2024 and sell it today you would earn a total of 411.00 from holding ACS Actividades de or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
ACS Actividades de vs. KBR Inc
Performance |
| Timeline |
| ACS Actividades de |
| KBR Inc |
ACS Actividades and KBR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACS Actividades and KBR
The main advantage of trading using opposite ACS Actividades and KBR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, KBR 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 KBR will offset losses from the drop in KBR's long position.| ACS Actividades vs. Arcadis NV | ACS Actividades vs. KBR Inc | ACS Actividades vs. Orion Group Holdings | ACS Actividades vs. Jacobs 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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