Correlation Between Concrete Pumping and Kajima Corp
Can any of the company-specific risk be diversified away by investing in both Concrete Pumping and Kajima Corp 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 Concrete Pumping and Kajima Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Pumping Holdings and Kajima Corp ADR, you can compare the effects of market volatilities on Concrete Pumping and Kajima Corp 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 Concrete Pumping with a short position of Kajima Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and Kajima Corp.
Diversification Opportunities for Concrete Pumping and Kajima Corp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Concrete and Kajima is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Pumping Holdings and Kajima Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kajima Corp ADR and Concrete Pumping 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 Concrete Pumping Holdings are associated (or correlated) with Kajima Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kajima Corp ADR has no effect on the direction of Concrete Pumping i.e., Concrete Pumping and Kajima Corp go up and down completely randomly.
Pair Corralation between Concrete Pumping and Kajima Corp
If you would invest 1,709 in Kajima Corp ADR on August 29, 2024 and sell it today you would earn a total of 41.00 from holding Kajima Corp ADR or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Concrete Pumping Holdings vs. Kajima Corp ADR
Performance |
| Timeline |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kajima Corp ADR |
Concrete Pumping and Kajima Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Pumping and Kajima Corp
The main advantage of trading using opposite Concrete Pumping and Kajima Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Pumping position performs unexpectedly, Kajima Corp 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 Kajima Corp will offset losses from the drop in Kajima Corp's long position.| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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