Correlation Between Afine Investments and Kap Industrial
Can any of the company-specific risk be diversified away by investing in both Afine Investments and Kap Industrial 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 Afine Investments and Kap Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afine Investments and Kap Industrial Holdings, you can compare the effects of market volatilities on Afine Investments and Kap Industrial 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 Afine Investments with a short position of Kap Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afine Investments and Kap Industrial.
Diversification Opportunities for Afine Investments and Kap Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Afine and Kap is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Afine Investments and Kap Industrial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kap Industrial Holdings and Afine Investments 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 Afine Investments are associated (or correlated) with Kap Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kap Industrial Holdings has no effect on the direction of Afine Investments i.e., Afine Investments and Kap Industrial go up and down completely randomly.
Pair Corralation between Afine Investments and Kap Industrial
If you would invest 40,000 in Afine Investments on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Afine Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afine Investments vs. Kap Industrial Holdings
Performance |
| Timeline |
| Afine Investments |
| Kap Industrial Holdings |
Afine Investments and Kap Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afine Investments and Kap Industrial
The main advantage of trading using opposite Afine Investments and Kap Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afine Investments position performs unexpectedly, Kap Industrial 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 Kap Industrial will offset losses from the drop in Kap Industrial's long position.| Afine Investments vs. Schroder European Real | Afine Investments vs. Centaur Bci Balanced | Afine Investments vs. Sabvest Capital | Afine Investments vs. Growthpoint Properties |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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