Correlation Between Dear Cashmere and Kone Oyj
Can any of the company-specific risk be diversified away by investing in both Dear Cashmere and Kone Oyj 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 Dear Cashmere and Kone Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dear Cashmere Holding and Kone Oyj ADR, you can compare the effects of market volatilities on Dear Cashmere and Kone Oyj 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 Dear Cashmere with a short position of Kone Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dear Cashmere and Kone Oyj.
Diversification Opportunities for Dear Cashmere and Kone Oyj
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dear and Kone is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dear Cashmere Holding and Kone Oyj ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kone Oyj ADR and Dear Cashmere 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 Dear Cashmere Holding are associated (or correlated) with Kone Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kone Oyj ADR has no effect on the direction of Dear Cashmere i.e., Dear Cashmere and Kone Oyj go up and down completely randomly.
Pair Corralation between Dear Cashmere and Kone Oyj
Given the investment horizon of 90 days Dear Cashmere Holding is expected to generate 11.24 times more return on investment than Kone Oyj. However, Dear Cashmere is 11.24 times more volatile than Kone Oyj ADR. It trades about 0.03 of its potential returns per unit of risk. Kone Oyj ADR is currently generating about -0.1 per unit of risk. If you would invest 16.00 in Dear Cashmere Holding on September 12, 2024 and sell it today you would lose (1.00) from holding Dear Cashmere Holding or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dear Cashmere Holding vs. Kone Oyj ADR
Performance |
| Timeline |
| Dear Cashmere Holding |
| Kone Oyj ADR |
Dear Cashmere and Kone Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dear Cashmere and Kone Oyj
The main advantage of trading using opposite Dear Cashmere and Kone Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dear Cashmere position performs unexpectedly, Kone Oyj 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 Kone Oyj will offset losses from the drop in Kone Oyj's long position.| Dear Cashmere vs. One World Universe | Dear Cashmere vs. All American Pet | Dear Cashmere vs. Ilustrato Pictures | Dear Cashmere vs. Quality Industrial Corp |
| Kone Oyj vs. Generac Holdings | Kone Oyj vs. Atlas Copco ADR | Kone Oyj vs. John Bean Technologies | Kone Oyj vs. Franklin Electric Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |