Correlation Between Ebro Foods and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Ebro Foods and Kirin Holdings 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 Ebro Foods and Kirin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods SA and Kirin Holdings, you can compare the effects of market volatilities on Ebro Foods and Kirin Holdings 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 Ebro Foods with a short position of Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and Kirin Holdings.
Diversification Opportunities for Ebro Foods and Kirin Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ebro and Kirin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods SA and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings and Ebro Foods 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 Ebro Foods SA are associated (or correlated) with Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Ebro Foods i.e., Ebro Foods and Kirin Holdings go up and down completely randomly.
Pair Corralation between Ebro Foods and Kirin Holdings
Assuming the 90 days horizon Ebro Foods SA is expected to under-perform the Kirin Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Ebro Foods SA is 1.59 times less risky than Kirin Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Kirin Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,310 in Kirin Holdings on September 13, 2024 and sell it today you would lose (10.00) from holding Kirin Holdings or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebro Foods SA vs. Kirin Holdings
Performance |
| Timeline |
| Ebro Foods SA |
| Kirin Holdings |
Ebro Foods and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and Kirin Holdings
The main advantage of trading using opposite Ebro Foods and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Ebro Foods vs. Thai Beverage Public | Ebro Foods vs. Warner Music Group | Ebro Foods vs. QURATE RETAIL INC | Ebro Foods vs. Vastned Retail NV |
| Kirin Holdings vs. THORNEY TECHS LTD | Kirin Holdings vs. SOFI TECHNOLOGIES | Kirin Holdings vs. Digilife Technologies Limited | Kirin Holdings vs. Ebro Foods 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |