Correlation Between Goodbye Kansas and Cell Impact
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Cell Impact 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 Cell Impact 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 Cell Impact AB, you can compare the effects of market volatilities on Goodbye Kansas and Cell Impact 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 Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Cell Impact.
Diversification Opportunities for Goodbye Kansas and Cell Impact
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goodbye and Cell is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact 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 Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Cell Impact go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Cell Impact
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 2.63 times more return on investment than Cell Impact. However, Goodbye Kansas is 2.63 times more volatile than Cell Impact AB. It trades about 0.0 of its potential returns per unit of risk. Cell Impact AB is currently generating about -0.01 per unit of risk. If you would invest 1,782 in Goodbye Kansas Group on September 24, 2024 and sell it today you would lose (1,635) from holding Goodbye Kansas Group or give up 91.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodbye Kansas Group vs. Cell Impact AB
Performance |
| Timeline |
| Goodbye Kansas Group |
| Cell Impact AB |
Goodbye Kansas and Cell Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Cell Impact
The main advantage of trading using opposite Goodbye Kansas and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact's long position.| Goodbye Kansas vs. Modern Times Group | Goodbye Kansas vs. Millicom International Cellular | Goodbye Kansas vs. Tele2 AB | Goodbye Kansas vs. BHG Group AB |
| Cell Impact vs. Humble Group AB | Cell Impact vs. Enad Global 7 | Cell Impact vs. Goodbye Kansas Group | Cell Impact vs. Mekonomen 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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