Correlation Between GO2 People and Kneomedia
Can any of the company-specific risk be diversified away by investing in both GO2 People and Kneomedia 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 GO2 People and Kneomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GO2 People and Kneomedia, you can compare the effects of market volatilities on GO2 People and Kneomedia 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 GO2 People with a short position of Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GO2 People and Kneomedia.
Diversification Opportunities for GO2 People and Kneomedia
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GO2 and Kneomedia is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GO2 People and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia and GO2 People 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 GO2 People are associated (or correlated) with Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of GO2 People i.e., GO2 People and Kneomedia go up and down completely randomly.
Pair Corralation between GO2 People and Kneomedia
If you would invest 0.20 in Kneomedia on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Kneomedia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GO2 People vs. Kneomedia
Performance |
| Timeline |
| GO2 People |
| Kneomedia |
GO2 People and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GO2 People and Kneomedia
The main advantage of trading using opposite GO2 People and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GO2 People position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| GO2 People vs. Richmond Vanadium Technology | GO2 People vs. BSP Financial Group | GO2 People vs. Credit Clear | GO2 People vs. Ras Technology Holdings |
| Kneomedia vs. Accent Resources NL | Kneomedia vs. Hutchison Telecommunications | Kneomedia vs. Energy Resources | Kneomedia vs. GO2 People |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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