Correlation Between 1847 Holdings and Keppel
Can any of the company-specific risk be diversified away by investing in both 1847 Holdings and Keppel 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 1847 Holdings and Keppel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1847 Holdings LLC and Keppel Limited, you can compare the effects of market volatilities on 1847 Holdings and Keppel 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 1847 Holdings with a short position of Keppel. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1847 Holdings and Keppel.
Diversification Opportunities for 1847 Holdings and Keppel
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 1847 and Keppel is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding 1847 Holdings LLC and Keppel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keppel Limited and 1847 Holdings 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 1847 Holdings LLC are associated (or correlated) with Keppel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keppel Limited has no effect on the direction of 1847 Holdings i.e., 1847 Holdings and Keppel go up and down completely randomly.
Pair Corralation between 1847 Holdings and Keppel
Given the investment horizon of 90 days 1847 Holdings LLC is expected to under-perform the Keppel. In addition to that, 1847 Holdings is 2.21 times more volatile than Keppel Limited. It trades about -0.48 of its total potential returns per unit of risk. Keppel Limited is currently generating about 0.04 per unit of volatility. If you would invest 1,000.00 in Keppel Limited on September 20, 2024 and sell it today you would earn a total of 16.00 from holding Keppel Limited or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1847 Holdings LLC vs. Keppel Limited
Performance |
| Timeline |
| 1847 Holdings LLC |
| Keppel Limited |
1847 Holdings and Keppel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1847 Holdings and Keppel
The main advantage of trading using opposite 1847 Holdings and Keppel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1847 Holdings position performs unexpectedly, Keppel 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 Keppel will offset losses from the drop in Keppel's long position.| 1847 Holdings vs. Steel Partners Holdings | 1847 Holdings vs. Brookfield Business Partners | 1847 Holdings vs. Griffon | 1847 Holdings vs. Tejon Ranch Co |
| Keppel vs. Arca Continental SAB | Keppel vs. Becle SA de | Keppel vs. Aquagold International | Keppel vs. Morningstar Unconstrained Allocation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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