Correlation Between Goodbye Kansas and Careium AB
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Careium AB 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 Careium AB 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 Careium AB, you can compare the effects of market volatilities on Goodbye Kansas and Careium AB 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 Careium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Careium AB.
Diversification Opportunities for Goodbye Kansas and Careium AB
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goodbye and Careium is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Careium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careium 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 Careium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careium AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Careium AB go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Careium AB
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to under-perform the Careium AB. In addition to that, Goodbye Kansas is 5.93 times more volatile than Careium AB. It trades about 0.0 of its total potential returns per unit of risk. Careium AB is currently generating about 0.04 per unit of volatility. If you would invest 2,460 in Careium AB on September 14, 2024 and sell it today you would earn a total of 490.00 from holding Careium AB or generate 19.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodbye Kansas Group vs. Careium AB
Performance |
| Timeline |
| Goodbye Kansas Group |
| Careium AB |
Goodbye Kansas and Careium AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Careium AB
The main advantage of trading using opposite Goodbye Kansas and Careium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Careium AB 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 Careium AB will offset losses from the drop in Careium AB's long position.| Goodbye Kansas vs. MTI Investment SE | Goodbye Kansas vs. Kinnevik Investment AB | Goodbye Kansas vs. Nexam Chemical Holding | Goodbye Kansas vs. eEducation Albert AB |
| Careium AB vs. Humble Group AB | Careium AB vs. Enad Global 7 | Careium AB vs. Goodbye Kansas Group | Careium AB vs. KABE Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |