Correlation Between Goodbye Kansas and Alcadon Group
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Alcadon Group 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 Goodbye Kansas and Alcadon Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodbye Kansas Group and Alcadon Group AB, you can compare the effects of market volatilities on Goodbye Kansas and Alcadon Group 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 Goodbye Kansas with a short position of Alcadon Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Alcadon Group.
Diversification Opportunities for Goodbye Kansas and Alcadon Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goodbye and Alcadon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Alcadon Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcadon Group AB and Goodbye Kansas 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 Goodbye Kansas Group are associated (or correlated) with Alcadon Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcadon Group AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Alcadon Group go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Alcadon Group
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 6.67 times more return on investment than Alcadon Group. However, Goodbye Kansas is 6.67 times more volatile than Alcadon Group AB. It trades about 0.08 of its potential returns per unit of risk. Alcadon Group AB is currently generating about -0.04 per unit of risk. If you would invest 85.00 in Goodbye Kansas Group on August 30, 2024 and sell it today you would earn a total of 54.00 from holding Goodbye Kansas Group or generate 63.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodbye Kansas Group vs. Alcadon Group AB
Performance |
| Timeline |
| Goodbye Kansas Group |
| Alcadon Group AB |
Goodbye Kansas and Alcadon Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Alcadon Group
The main advantage of trading using opposite Goodbye Kansas and Alcadon Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Alcadon Group 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 Alcadon Group will offset losses from the drop in Alcadon Group's long position.The idea behind Goodbye Kansas Group and Alcadon Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alcadon Group vs. Goodbye Kansas Group | Alcadon Group vs. Enersize Oy | Alcadon Group vs. SaltX Technology Holding | Alcadon Group vs. Oncopeptides AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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