Correlation Between Fitell Ordinary and Kohls Corp
Can any of the company-specific risk be diversified away by investing in both Fitell Ordinary and Kohls Corp 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 Fitell Ordinary and Kohls Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitell Ordinary and Kohls Corp, you can compare the effects of market volatilities on Fitell Ordinary and Kohls Corp 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 Fitell Ordinary with a short position of Kohls Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitell Ordinary and Kohls Corp.
Diversification Opportunities for Fitell Ordinary and Kohls Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fitell and Kohls is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fitell Ordinary and Kohls Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohls Corp and Fitell Ordinary 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 Fitell Ordinary are associated (or correlated) with Kohls Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohls Corp has no effect on the direction of Fitell Ordinary i.e., Fitell Ordinary and Kohls Corp go up and down completely randomly.
Pair Corralation between Fitell Ordinary and Kohls Corp
Given the investment horizon of 90 days Fitell Ordinary is expected to generate 2.01 times more return on investment than Kohls Corp. However, Fitell Ordinary is 2.01 times more volatile than Kohls Corp. It trades about -0.06 of its potential returns per unit of risk. Kohls Corp is currently generating about -0.19 per unit of risk. If you would invest 3,401 in Fitell Ordinary on August 31, 2024 and sell it today you would lose (701.00) from holding Fitell Ordinary or give up 20.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitell Ordinary vs. Kohls Corp
Performance |
| Timeline |
| Fitell Ordinary |
| Kohls Corp |
Fitell Ordinary and Kohls Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitell Ordinary and Kohls Corp
The main advantage of trading using opposite Fitell Ordinary and Kohls Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitell Ordinary position performs unexpectedly, Kohls Corp 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 Kohls Corp will offset losses from the drop in Kohls Corp's long position.| Fitell Ordinary vs. Savers Value Village, | Fitell Ordinary vs. Container Store Group | Fitell Ordinary vs. ZOOZ Power Ltd | Fitell Ordinary vs. GrowGeneration Corp |
| Kohls Corp vs. Nordstrom | Kohls Corp vs. Dillards | Kohls Corp vs. Marks Spencer Group | Kohls Corp vs. Marks and Spencer |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets |