Correlation Between Black Knight and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both Black Knight and Grab 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 Black Knight and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Knight and Grab Holdings, you can compare the effects of market volatilities on Black Knight and Grab 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 Black Knight with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Knight and Grab Holdings.
Diversification Opportunities for Black Knight and Grab Holdings
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Black and Grab is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Black Knight and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings and Black Knight 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 Black Knight are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of Black Knight i.e., Black Knight and Grab Holdings go up and down completely randomly.
Pair Corralation between Black Knight and Grab Holdings
If you would invest 417.00 in Grab Holdings on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Grab Holdings or generate 24.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Black Knight vs. Grab Holdings
Performance |
| Timeline |
| Black Knight |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grab Holdings |
Black Knight and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Knight and Grab Holdings
The main advantage of trading using opposite Black Knight and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Knight position performs unexpectedly, Grab 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| Black Knight vs. Paylocity Holdng | Black Knight vs. Paycor HCM | Black Knight vs. Blackbaud | Black Knight vs. Clearwater Analytics Holdings |
| Grab Holdings vs. LYFT Inc | Grab Holdings vs. Kingsoft Cloud Holdings | Grab Holdings vs. AMTD Digital | Grab Holdings vs. Uber Technologies |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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