Correlation Between Kumulus Vape and Groupimo
Can any of the company-specific risk be diversified away by investing in both Kumulus Vape and Groupimo 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 Kumulus Vape and Groupimo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kumulus Vape SA and Groupimo SA, you can compare the effects of market volatilities on Kumulus Vape and Groupimo 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 Kumulus Vape with a short position of Groupimo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kumulus Vape and Groupimo.
Diversification Opportunities for Kumulus Vape and Groupimo
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kumulus and Groupimo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kumulus Vape SA and Groupimo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupimo SA and Kumulus Vape 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 Kumulus Vape SA are associated (or correlated) with Groupimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupimo SA has no effect on the direction of Kumulus Vape i.e., Kumulus Vape and Groupimo go up and down completely randomly.
Pair Corralation between Kumulus Vape and Groupimo
Assuming the 90 days trading horizon Kumulus Vape SA is expected to under-perform the Groupimo. But the stock apears to be less risky and, when comparing its historical volatility, Kumulus Vape SA is 9.92 times less risky than Groupimo. The stock trades about -0.08 of its potential returns per unit of risk. The Groupimo SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Groupimo SA on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Groupimo SA or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kumulus Vape SA vs. Groupimo SA
Performance |
| Timeline |
| Kumulus Vape SA |
| Groupimo SA |
Kumulus Vape and Groupimo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kumulus Vape and Groupimo
The main advantage of trading using opposite Kumulus Vape and Groupimo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kumulus Vape position performs unexpectedly, Groupimo 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 Groupimo will offset losses from the drop in Groupimo's long position.| Kumulus Vape vs. LVMH Mot Hennessy | Kumulus Vape vs. LOreal SA | Kumulus Vape vs. Hermes International SCA | Kumulus Vape vs. Manitou BF SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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