Correlation Between EAST SIDE and KION Group
Can any of the company-specific risk be diversified away by investing in both EAST SIDE and KION Group 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 EAST SIDE and KION Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and KION Group AG, you can compare the effects of market volatilities on EAST SIDE and KION Group 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 EAST SIDE with a short position of KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and KION Group.
Diversification Opportunities for EAST SIDE and KION Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between EAST and KION is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG and EAST SIDE 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 EAST SIDE GAMES are associated (or correlated) with KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of EAST SIDE i.e., EAST SIDE and KION Group go up and down completely randomly.
Pair Corralation between EAST SIDE and KION Group
Assuming the 90 days horizon EAST SIDE GAMES is expected to under-perform the KION Group. In addition to that, EAST SIDE is 2.42 times more volatile than KION Group AG. It trades about -0.12 of its total potential returns per unit of risk. KION Group AG is currently generating about -0.09 per unit of volatility. If you would invest 3,562 in KION Group AG on September 1, 2024 and sell it today you would lose (192.00) from holding KION Group AG or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EAST SIDE GAMES vs. KION Group AG
Performance |
| Timeline |
| EAST SIDE GAMES |
| KION Group AG |
EAST SIDE and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST SIDE and KION Group
The main advantage of trading using opposite EAST SIDE and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| EAST SIDE vs. WILLIS LEASE FIN | EAST SIDE vs. ARDAGH METAL PACDL 0001 | EAST SIDE vs. SHIP HEALTHCARE HLDGINC | EAST SIDE vs. Lendlease Group |
| KION Group vs. United Natural Foods | KION Group vs. Tianjin Capital Environmental | KION Group vs. CECO ENVIRONMENTAL | KION Group vs. NIPPON MEAT PACKERS |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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