Correlation Between Capital Income and Kearny Financial
Can any of the company-specific risk be diversified away by investing in both Capital Income and Kearny Financial 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 Capital Income and Kearny Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Income Builder and Kearny Financial Corp, you can compare the effects of market volatilities on Capital Income and Kearny Financial 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 Capital Income with a short position of Kearny Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and Kearny Financial.
Diversification Opportunities for Capital Income and Kearny Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capital and Kearny is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and Kearny Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kearny Financial Corp and Capital Income 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 Capital Income Builder are associated (or correlated) with Kearny Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kearny Financial Corp has no effect on the direction of Capital Income i.e., Capital Income and Kearny Financial go up and down completely randomly.
Pair Corralation between Capital Income and Kearny Financial
Assuming the 90 days horizon Capital Income Builder is expected to generate 0.23 times more return on investment than Kearny Financial. However, Capital Income Builder is 4.28 times less risky than Kearny Financial. It trades about 0.26 of its potential returns per unit of risk. Kearny Financial Corp is currently generating about 0.01 per unit of risk. If you would invest 6,893 in Capital Income Builder on November 3, 2024 and sell it today you would earn a total of 206.00 from holding Capital Income Builder or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Income Builder vs. Kearny Financial Corp
Performance |
| Timeline |
| Capital Income Builder |
| Kearny Financial Corp |
Capital Income and Kearny Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and Kearny Financial
The main advantage of trading using opposite Capital Income and Kearny Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income position performs unexpectedly, Kearny Financial 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 Kearny Financial will offset losses from the drop in Kearny Financial's long position.| Capital Income vs. Blackrock Financial Institutions | Capital Income vs. Fidelity Advisor Financial | Capital Income vs. Blackstone Secured Lending | Capital Income vs. 1919 Financial Services |
| Kearny Financial vs. National Bank Holdings | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Financial Institutions | Kearny Financial vs. Heritage Financial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |