Correlation Between ChampionX and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both ChampionX and Konami Holdings 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 ChampionX and Konami Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Konami Holdings, you can compare the effects of market volatilities on ChampionX and Konami Holdings 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 ChampionX with a short position of Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Konami Holdings.
Diversification Opportunities for ChampionX and Konami Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChampionX and Konami is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings and ChampionX 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 ChampionX are associated (or correlated) with Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of ChampionX i.e., ChampionX and Konami Holdings go up and down completely randomly.
Pair Corralation between ChampionX and Konami Holdings
Considering the 90-day investment horizon ChampionX is expected to generate 42.34 times less return on investment than Konami Holdings. But when comparing it to its historical volatility, ChampionX is 2.7 times less risky than Konami Holdings. It trades about 0.02 of its potential returns per unit of risk. Konami Holdings is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 4,460 in Konami Holdings on September 2, 2024 and sell it today you would earn a total of 1,028 from holding Konami Holdings or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
ChampionX vs. Konami Holdings
Performance |
| Timeline |
| ChampionX |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ChampionX and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Konami Holdings
The main advantage of trading using opposite ChampionX and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' long position.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Konami Holdings vs. Agnico Eagle Mines | Konami Holdings vs. Jacobs Solutions | Konami Holdings vs. CECO Environmental Corp | Konami Holdings vs. ChampionX |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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