Correlation Between Collins Foods and Kneomedia
Can any of the company-specific risk be diversified away by investing in both Collins Foods and Kneomedia 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 Collins Foods and Kneomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collins Foods and Kneomedia, you can compare the effects of market volatilities on Collins Foods and Kneomedia 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 Collins Foods with a short position of Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collins Foods and Kneomedia.
Diversification Opportunities for Collins Foods and Kneomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Collins and Kneomedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Collins Foods and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia and Collins Foods 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 Collins Foods are associated (or correlated) with Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of Collins Foods i.e., Collins Foods and Kneomedia go up and down completely randomly.
Pair Corralation between Collins Foods and Kneomedia
Assuming the 90 days trading horizon Collins Foods is expected to generate 0.19 times more return on investment than Kneomedia. However, Collins Foods is 5.26 times less risky than Kneomedia. It trades about 0.03 of its potential returns per unit of risk. Kneomedia is currently generating about 0.01 per unit of risk. If you would invest 715.00 in Collins Foods on September 2, 2024 and sell it today you would earn a total of 144.00 from holding Collins Foods or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collins Foods vs. Kneomedia
Performance |
| Timeline |
| Collins Foods |
| Kneomedia |
Collins Foods and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collins Foods and Kneomedia
The main advantage of trading using opposite Collins Foods and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collins Foods position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| Collins Foods vs. iShares Global Healthcare | Collins Foods vs. Australian Dairy Farms | Collins Foods vs. Adriatic Metals Plc | Collins Foods vs. Australian Agricultural |
| Kneomedia vs. Accent Resources NL | Kneomedia vs. Hutchison Telecommunications | Kneomedia vs. Energy Resources | Kneomedia vs. GO2 People |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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