Correlation Between Goodbye Kansas and Humble Group
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Humble 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 Humble 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 Humble Group AB, you can compare the effects of market volatilities on Goodbye Kansas and Humble 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 Humble Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Humble Group.
Diversification Opportunities for Goodbye Kansas and Humble Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goodbye and Humble is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Humble Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humble 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 Humble Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humble Group AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Humble Group go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Humble Group
Assuming the 90 days trading horizon Goodbye Kansas is expected to generate 1.55 times less return on investment than Humble Group. In addition to that, Goodbye Kansas is 1.31 times more volatile than Humble Group AB. It trades about 0.13 of its total potential returns per unit of risk. Humble Group AB is currently generating about 0.26 per unit of volatility. If you would invest 1,038 in Humble Group AB on September 24, 2024 and sell it today you would earn a total of 179.00 from holding Humble Group AB or generate 17.24% 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. Humble Group AB
Performance |
| Timeline |
| Goodbye Kansas Group |
| Humble Group AB |
Goodbye Kansas and Humble Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Humble Group
The main advantage of trading using opposite Goodbye Kansas and Humble Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Humble 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 Humble Group will offset losses from the drop in Humble 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 |
| Humble Group vs. Samhllsbyggnadsbolaget i Norden | Humble Group vs. Media and Games | Humble Group vs. Hexatronic Group AB | Humble Group vs. Sinch 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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