Correlation Between Commercial Vehicle and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both Commercial Vehicle and KRISPY KREME 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 Commercial Vehicle and KRISPY KREME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial Vehicle Group and KRISPY KREME DL 01, you can compare the effects of market volatilities on Commercial Vehicle and KRISPY KREME 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 Commercial Vehicle with a short position of KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Vehicle and KRISPY KREME.
Diversification Opportunities for Commercial Vehicle and KRISPY KREME
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Commercial and KRISPY is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Vehicle Group and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL and Commercial Vehicle 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 Commercial Vehicle Group are associated (or correlated) with KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of Commercial Vehicle i.e., Commercial Vehicle and KRISPY KREME go up and down completely randomly.
Pair Corralation between Commercial Vehicle and KRISPY KREME
Assuming the 90 days trading horizon Commercial Vehicle Group is expected to under-perform the KRISPY KREME. In addition to that, Commercial Vehicle is 1.0 times more volatile than KRISPY KREME DL 01. It trades about -0.11 of its total potential returns per unit of risk. KRISPY KREME DL 01 is currently generating about -0.01 per unit of volatility. If you would invest 1,405 in KRISPY KREME DL 01 on August 31, 2024 and sell it today you would lose (355.00) from holding KRISPY KREME DL 01 or give up 25.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commercial Vehicle Group vs. KRISPY KREME DL 01
Performance |
| Timeline |
| Commercial Vehicle |
| KRISPY KREME DL |
Commercial Vehicle and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Vehicle and KRISPY KREME
The main advantage of trading using opposite Commercial Vehicle and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Vehicle position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc |
| KRISPY KREME vs. Highlight Communications AG | KRISPY KREME vs. Playtech plc | KRISPY KREME vs. PLAYSTUDIOS A DL 0001 | KRISPY KREME vs. LG Display 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 Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |