Correlation Between Castellum and K2A Knaust
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By analyzing existing cross correlation between Castellum AB and K2A Knaust Andersson, you can compare the effects of market volatilities on Castellum and K2A Knaust 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 Castellum with a short position of K2A Knaust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and K2A Knaust.
Diversification Opportunities for Castellum and K2A Knaust
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Castellum and K2A is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Castellum AB and K2A Knaust Andersson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K2A Knaust Andersson and Castellum 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 Castellum AB are associated (or correlated) with K2A Knaust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K2A Knaust Andersson has no effect on the direction of Castellum i.e., Castellum and K2A Knaust go up and down completely randomly.
Pair Corralation between Castellum and K2A Knaust
Assuming the 90 days trading horizon Castellum AB is expected to under-perform the K2A Knaust. But the stock apears to be less risky and, when comparing its historical volatility, Castellum AB is 2.19 times less risky than K2A Knaust. The stock trades about -0.01 of its potential returns per unit of risk. The K2A Knaust Andersson is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 15,965 in K2A Knaust Andersson on September 2, 2024 and sell it today you would earn a total of 2,585 from holding K2A Knaust Andersson or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum AB vs. K2A Knaust Andersson
Performance |
| Timeline |
| Castellum AB |
| K2A Knaust Andersson |
Castellum and K2A Knaust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and K2A Knaust
The main advantage of trading using opposite Castellum and K2A Knaust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, K2A Knaust 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 K2A Knaust will offset losses from the drop in K2A Knaust's long position.The idea behind Castellum AB and K2A Knaust Andersson pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| K2A Knaust vs. Corem Property Group | K2A Knaust vs. Volati AB | K2A Knaust vs. NP3 Fastigheter AB | K2A Knaust vs. Heimstaden AB Pfd |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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