Correlation Between Cinis Fertilizer and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Cinis Fertilizer 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 Cinis Fertilizer and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinis Fertilizer AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Cinis Fertilizer 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 Cinis Fertilizer with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinis Fertilizer and Goodbye Kansas.
Diversification Opportunities for Cinis Fertilizer and Goodbye Kansas
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cinis and Goodbye is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cinis Fertilizer 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 Cinis Fertilizer 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 Cinis Fertilizer 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 Cinis Fertilizer i.e., Cinis Fertilizer and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Cinis Fertilizer and Goodbye Kansas
Assuming the 90 days trading horizon Cinis Fertilizer AB is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, Cinis Fertilizer AB is 1.57 times less risky than Goodbye Kansas. The stock trades about -0.17 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 146.00 in Goodbye Kansas Group on August 25, 2024 and sell it today you would lose (7.00) from holding Goodbye Kansas Group or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinis Fertilizer AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| Cinis Fertilizer |
| Goodbye Kansas Group |
Cinis Fertilizer and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinis Fertilizer and Goodbye Kansas
The main advantage of trading using opposite Cinis Fertilizer and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinis Fertilizer 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.| Cinis Fertilizer vs. FormPipe Software AB | Cinis Fertilizer vs. Catena Media plc | Cinis Fertilizer vs. Addtech AB | Cinis Fertilizer vs. Invisio Communications AB |
| Goodbye Kansas vs. Raketech Group Holding | Goodbye Kansas vs. FormPipe Software AB | Goodbye Kansas vs. New Nordic Healthbrands | Goodbye Kansas vs. Sdiptech 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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