Correlation Between DATAGROUP and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both DATAGROUP and KENEDIX OFFICE 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 DATAGROUP and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and KENEDIX OFFICE INV, you can compare the effects of market volatilities on DATAGROUP and KENEDIX OFFICE 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 DATAGROUP with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and KENEDIX OFFICE.
Diversification Opportunities for DATAGROUP and KENEDIX OFFICE
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DATAGROUP and KENEDIX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and DATAGROUP 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 DATAGROUP SE are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of DATAGROUP i.e., DATAGROUP and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between DATAGROUP and KENEDIX OFFICE
Assuming the 90 days trading horizon DATAGROUP SE is expected to under-perform the KENEDIX OFFICE. But the stock apears to be less risky and, when comparing its historical volatility, DATAGROUP SE is 1.09 times less risky than KENEDIX OFFICE. The stock trades about -0.21 of its potential returns per unit of risk. The KENEDIX OFFICE INV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 87,000 in KENEDIX OFFICE INV on October 22, 2024 and sell it today you would earn a total of 2,000 from holding KENEDIX OFFICE INV or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATAGROUP SE vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| DATAGROUP SE |
| KENEDIX OFFICE INV |
DATAGROUP and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and KENEDIX OFFICE
The main advantage of trading using opposite DATAGROUP and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| DATAGROUP vs. SPORTING | DATAGROUP vs. Urban Outfitters | DATAGROUP vs. MHP Hotel AG | DATAGROUP vs. G III Apparel Group |
| KENEDIX OFFICE vs. BORR DRILLING NEW | KENEDIX OFFICE vs. Siamgas And Petrochemicals | KENEDIX OFFICE vs. TIANDE CHEMICAL | KENEDIX OFFICE vs. Major Drilling Group |
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
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |