Correlation Between HE Equipment and Kuka AG
Can any of the company-specific risk be diversified away by investing in both HE Equipment and Kuka AG 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 HE Equipment and Kuka AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HE Equipment Services and Kuka AG ADR, you can compare the effects of market volatilities on HE Equipment and Kuka AG 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 HE Equipment with a short position of Kuka AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and Kuka AG.
Diversification Opportunities for HE Equipment and Kuka AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEES and Kuka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and Kuka AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuka AG ADR and HE Equipment 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 HE Equipment Services are associated (or correlated) with Kuka AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuka AG ADR has no effect on the direction of HE Equipment i.e., HE Equipment and Kuka AG go up and down completely randomly.
Pair Corralation between HE Equipment and Kuka AG
If you would invest 5,145 in HE Equipment Services on September 14, 2024 and sell it today you would earn a total of 421.00 from holding HE Equipment Services or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
HE Equipment Services vs. Kuka AG ADR
Performance |
| Timeline |
| HE Equipment Services |
| Kuka AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HE Equipment and Kuka AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and Kuka AG
The main advantage of trading using opposite HE Equipment and Kuka AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, Kuka AG 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 Kuka AG will offset losses from the drop in Kuka AG's long position.| HE Equipment vs. McGrath RentCorp | HE Equipment vs. Custom Truck One | HE Equipment vs. Herc Holdings | HE Equipment vs. Alta Equipment Group |
| Kuka AG vs. Osaka Steel Co, | Kuka AG vs. Coda Octopus Group | Kuka AG vs. Grupo Simec SAB | Kuka AG vs. Reservoir Media |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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