Correlation Between Amani Gold and Kneomedia
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Kneomedia 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 Amani Gold and Kneomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Kneomedia, you can compare the effects of market volatilities on Amani Gold and Kneomedia 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 Amani Gold with a short position of Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Kneomedia.
Diversification Opportunities for Amani Gold and Kneomedia
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amani and Kneomedia is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia and Amani Gold 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 Amani Gold are associated (or correlated) with Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of Amani Gold i.e., Amani Gold and Kneomedia go up and down completely randomly.
Pair Corralation between Amani Gold and Kneomedia
If you would invest 0.20 in Kneomedia on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Kneomedia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amani Gold vs. Kneomedia
Performance |
| Timeline |
| Amani Gold |
| Kneomedia |
Amani Gold and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Kneomedia
The main advantage of trading using opposite Amani Gold and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| Amani Gold vs. Aurelia Metals | Amani Gold vs. Qbe Insurance Group | Amani Gold vs. Perpetual Credit Income | Amani Gold vs. Platinum Asset Management |
| Kneomedia vs. Aneka Tambang Tbk | Kneomedia vs. Commonwealth Bank | Kneomedia vs. Commonwealth Bank of | Kneomedia vs. Australia and New |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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