Correlation Between Coinbase Global and Klépierre
Can any of the company-specific risk be diversified away by investing in both Coinbase Global and Klépierre 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 Coinbase Global and Klépierre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coinbase Global and Klpierre SA, you can compare the effects of market volatilities on Coinbase Global and Klépierre 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 Coinbase Global with a short position of Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Global and Klépierre.
Diversification Opportunities for Coinbase Global and Klépierre
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coinbase and Klépierre is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Global and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and Coinbase Global 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 Coinbase Global are associated (or correlated) with Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Coinbase Global i.e., Coinbase Global and Klépierre go up and down completely randomly.
Pair Corralation between Coinbase Global and Klépierre
Given the investment horizon of 90 days Coinbase Global is expected to generate 12.39 times more return on investment than Klépierre. However, Coinbase Global is 12.39 times more volatile than Klpierre SA. It trades about 0.22 of its potential returns per unit of risk. Klpierre SA is currently generating about -0.38 per unit of risk. If you would invest 21,610 in Coinbase Global on August 28, 2024 and sell it today you would earn a total of 9,612 from holding Coinbase Global or generate 44.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coinbase Global vs. Klpierre SA
Performance |
| Timeline |
| Coinbase Global |
| Klpierre SA |
Coinbase Global and Klépierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coinbase Global and Klépierre
The main advantage of trading using opposite Coinbase Global and Klépierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coinbase Global position performs unexpectedly, Klépierre 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 Klépierre will offset losses from the drop in Klépierre's long position.| Coinbase Global vs. Moodys | Coinbase Global vs. MSCI Inc | Coinbase Global vs. Intercontinental Exchange | Coinbase Global vs. CME Group |
| Klépierre vs. Smart REIT | Klépierre vs. Riocan REIT | Klépierre vs. Plaza Retail REIT | Klépierre vs. Choice Properties Real |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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