Correlation Between REVO INSURANCE and Kering SA
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and Kering SA 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 REVO INSURANCE and Kering SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and Kering SA, you can compare the effects of market volatilities on REVO INSURANCE and Kering SA 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 REVO INSURANCE with a short position of Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and Kering SA.
Diversification Opportunities for REVO INSURANCE and Kering SA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between REVO and Kering is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and Kering SA go up and down completely randomly.
Pair Corralation between REVO INSURANCE and Kering SA
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 2.69 times more return on investment than Kering SA. However, REVO INSURANCE is 2.69 times more volatile than Kering SA. It trades about 0.08 of its potential returns per unit of risk. Kering SA is currently generating about -0.19 per unit of risk. If you would invest 1,095 in REVO INSURANCE SPA on October 11, 2024 and sell it today you would earn a total of 45.00 from holding REVO INSURANCE SPA or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. Kering SA
Performance |
| Timeline |
| REVO INSURANCE SPA |
| Kering SA |
REVO INSURANCE and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and Kering SA
The main advantage of trading using opposite REVO INSURANCE and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| REVO INSURANCE vs. Lendlease Group | REVO INSURANCE vs. ALBIS LEASING AG | REVO INSURANCE vs. Martin Marietta Materials | REVO INSURANCE vs. LOANDEPOT INC A |
| Kering SA vs. Quaker Chemical | Kering SA vs. CHEMICAL INDUSTRIES | Kering SA vs. SEKISUI CHEMICAL | Kering SA vs. CHINA EDUCATION GROUP |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |