Correlation Between AMCON Distributing and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Kolibri Global 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 AMCON Distributing and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Kolibri Global Energy, you can compare the effects of market volatilities on AMCON Distributing and Kolibri Global 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 AMCON Distributing with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Kolibri Global.
Diversification Opportunities for AMCON Distributing and Kolibri Global
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMCON and Kolibri is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and AMCON Distributing 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 AMCON Distributing are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Kolibri Global go up and down completely randomly.
Pair Corralation between AMCON Distributing and Kolibri Global
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Kolibri Global. But the stock apears to be less risky and, when comparing its historical volatility, AMCON Distributing is 1.07 times less risky than Kolibri Global. The stock trades about 0.0 of its potential returns per unit of risk. The Kolibri Global Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Kolibri Global Energy on September 2, 2024 and sell it today you would earn a total of 172.00 from holding Kolibri Global Energy or generate 67.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
AMCON Distributing vs. Kolibri Global Energy
Performance |
| Timeline |
| AMCON Distributing |
| Kolibri Global Energy |
AMCON Distributing and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Kolibri Global
The main advantage of trading using opposite AMCON Distributing and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| Kolibri Global vs. AMCON Distributing | Kolibri Global vs. Beyond Meat | Kolibri Global vs. MagnaChip Semiconductor | Kolibri Global vs. Taiwan Semiconductor Manufacturing |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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