Correlation Between Cell Impact and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Cell Impact and Goodbye Kansas 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 Cell Impact and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Impact AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Cell Impact and Goodbye Kansas 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 Cell Impact with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Impact and Goodbye Kansas.
Diversification Opportunities for Cell Impact and Goodbye Kansas
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cell and Goodbye is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cell Impact AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Cell Impact 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 Cell Impact AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Cell Impact i.e., Cell Impact and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Cell Impact and Goodbye Kansas
Assuming the 90 days horizon Cell Impact AB is expected to under-perform the Goodbye Kansas. In addition to that, Cell Impact is 1.08 times more volatile than Goodbye Kansas Group. It trades about -0.25 of its total potential returns per unit of risk. Goodbye Kansas Group is currently generating about 0.13 per unit of volatility. If you would invest 134.00 in Goodbye Kansas Group on September 24, 2024 and sell it today you would earn a total of 13.00 from holding Goodbye Kansas Group or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cell Impact AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| Cell Impact AB |
| Goodbye Kansas Group |
Cell Impact and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cell Impact and Goodbye Kansas
The main advantage of trading using opposite Cell Impact and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Impact position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| Cell Impact vs. Humble Group AB | Cell Impact vs. Enad Global 7 | Cell Impact vs. Goodbye Kansas Group | Cell Impact vs. Mekonomen AB |
| Goodbye Kansas vs. Modern Times Group | Goodbye Kansas vs. Millicom International Cellular | Goodbye Kansas vs. Tele2 AB | Goodbye Kansas vs. BHG Group AB |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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