Correlation Between Goodbye Kansas and Embellence Group
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Embellence 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 Embellence 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 Embellence Group AB, you can compare the effects of market volatilities on Goodbye Kansas and Embellence 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 Embellence Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Embellence Group.
Diversification Opportunities for Goodbye Kansas and Embellence Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goodbye and Embellence is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Embellence Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embellence Group 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 Embellence Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embellence Group has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Embellence Group go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Embellence Group
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 2.27 times more return on investment than Embellence Group. However, Goodbye Kansas is 2.27 times more volatile than Embellence Group AB. It trades about 0.13 of its potential returns per unit of risk. Embellence Group AB is currently generating about 0.01 per unit of risk. If you would invest 134.00 in Goodbye Kansas Group on September 24, 2024 and sell it today you would earn a total of 13.00 from holding Goodbye Kansas Group or generate 9.7% 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. Embellence Group AB
Performance |
| Timeline |
| Goodbye Kansas Group |
| Embellence Group |
Goodbye Kansas and Embellence Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Embellence Group
The main advantage of trading using opposite Goodbye Kansas and Embellence Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Embellence 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 Embellence Group will offset losses from the drop in Embellence Group'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 |
| Embellence Group vs. Rugvista Group AB | Embellence Group vs. Nimbus Group AB | Embellence Group vs. Desenio Group AB | Embellence Group vs. Idun Industrier 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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