Correlation Between Alphabet and KCAP FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Alphabet and KCAP FINANCIAL 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 Alphabet and KCAP FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphabet Inc Class C and KCAP FINANCIAL, you can compare the effects of market volatilities on Alphabet and KCAP FINANCIAL 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 Alphabet with a short position of KCAP FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and KCAP FINANCIAL.
Diversification Opportunities for Alphabet and KCAP FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alphabet and KCAP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C and KCAP FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCAP FINANCIAL and Alphabet 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 Alphabet Inc Class C are associated (or correlated) with KCAP FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCAP FINANCIAL has no effect on the direction of Alphabet i.e., Alphabet and KCAP FINANCIAL go up and down completely randomly.
Pair Corralation between Alphabet and KCAP FINANCIAL
If you would invest 8,858 in Alphabet Inc Class C on August 31, 2024 and sell it today you would earn a total of 8,191 from holding Alphabet Inc Class C or generate 92.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alphabet Inc Class C vs. KCAP FINANCIAL
Performance |
| Timeline |
| Alphabet Class C |
| KCAP FINANCIAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alphabet and KCAP FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and KCAP FINANCIAL
The main advantage of trading using opposite Alphabet and KCAP FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet position performs unexpectedly, KCAP FINANCIAL 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 KCAP FINANCIAL will offset losses from the drop in KCAP FINANCIAL's long position.The idea behind Alphabet Inc Class C and KCAP FINANCIAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KCAP FINANCIAL vs. PRECISION DRILLING P | KCAP FINANCIAL vs. GRIFFIN MINING LTD | KCAP FINANCIAL vs. PKSHA TECHNOLOGY INC | KCAP FINANCIAL vs. ORMAT TECHNOLOGIES |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |