Correlation Between Carlson Investments and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Grupa KTY 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 Carlson Investments and Grupa KTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Grupa KTY SA, you can compare the effects of market volatilities on Carlson Investments and Grupa KTY 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 Carlson Investments with a short position of Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Grupa KTY.
Diversification Opportunities for Carlson Investments and Grupa KTY
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlson and Grupa is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY SA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Carlson Investments i.e., Carlson Investments and Grupa KTY go up and down completely randomly.
Pair Corralation between Carlson Investments and Grupa KTY
Assuming the 90 days trading horizon Carlson Investments SA is expected to under-perform the Grupa KTY. In addition to that, Carlson Investments is 1.47 times more volatile than Grupa KTY SA. It trades about -0.1 of its total potential returns per unit of risk. Grupa KTY SA is currently generating about -0.05 per unit of volatility. If you would invest 78,400 in Grupa KTY SA on September 12, 2024 and sell it today you would lose (7,000) from holding Grupa KTY SA or give up 8.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Carlson Investments SA vs. Grupa KTY SA
Performance |
| Timeline |
| Carlson Investments |
| Grupa KTY SA |
Carlson Investments and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Grupa KTY
The main advantage of trading using opposite Carlson Investments and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| Grupa KTY vs. Noble Financials SA | Grupa KTY vs. Quantum Software SA | Grupa KTY vs. Medicofarma Biotech SA | Grupa KTY vs. Creotech Instruments 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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