Correlation Between Carmit and Kerur Holdings
Can any of the company-specific risk be diversified away by investing in both Carmit and Kerur 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 Carmit and Kerur Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmit and Kerur Holdings, you can compare the effects of market volatilities on Carmit and Kerur 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 Carmit with a short position of Kerur Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmit and Kerur Holdings.
Diversification Opportunities for Carmit and Kerur Holdings
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carmit and Kerur is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Carmit and Kerur Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerur Holdings and Carmit 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 Carmit are associated (or correlated) with Kerur Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerur Holdings has no effect on the direction of Carmit i.e., Carmit and Kerur Holdings go up and down completely randomly.
Pair Corralation between Carmit and Kerur Holdings
Assuming the 90 days trading horizon Carmit is expected to generate 221.63 times less return on investment than Kerur Holdings. But when comparing it to its historical volatility, Carmit is 1.83 times less risky than Kerur Holdings. It trades about 0.0 of its potential returns per unit of risk. Kerur Holdings is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 662,400 in Kerur Holdings on August 31, 2024 and sell it today you would earn a total of 95,300 from holding Kerur Holdings or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmit vs. Kerur Holdings
Performance |
| Timeline |
| Carmit |
| Kerur Holdings |
Carmit and Kerur Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmit and Kerur Holdings
The main advantage of trading using opposite Carmit and Kerur Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmit position performs unexpectedly, Kerur 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 Kerur Holdings will offset losses from the drop in Kerur Holdings' long position.| Carmit vs. Neto ME Holdings | Carmit vs. Kerur Holdings | Carmit vs. Salomon A Angel | Carmit vs. Sano Brunos Enterprises |
| Kerur Holdings vs. Neto ME Holdings | Kerur Holdings vs. Scope Metals Group | Kerur Holdings vs. Delek Automotive Systems | Kerur Holdings vs. Aryt Industries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |