Correlation Between Cboe UK and Kinnevik Investment
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By analyzing existing cross correlation between Cboe UK Consumer and Kinnevik Investment AB, you can compare the effects of market volatilities on Cboe UK and Kinnevik Investment 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 Cboe UK with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Kinnevik Investment.
Diversification Opportunities for Cboe UK and Kinnevik Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cboe and Kinnevik is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Cboe UK i.e., Cboe UK and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Cboe UK and Kinnevik Investment
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.53 times more return on investment than Kinnevik Investment. However, Cboe UK Consumer is 1.9 times less risky than Kinnevik Investment. It trades about 0.41 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.04 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 284,603 from holding Cboe UK Consumer or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cboe UK Consumer vs. Kinnevik Investment AB
Performance |
| Timeline |
Cboe UK and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Kinnevik Investment AB
Pair trading matchups for Kinnevik Investment
Pair Trading with Cboe UK and Kinnevik Investment
The main advantage of trading using opposite Cboe UK and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Hyundai Motor | Kinnevik Investment vs. Toyota Motor Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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