Correlation Between International Business and Kontrol Technologies
Can any of the company-specific risk be diversified away by investing in both International Business and Kontrol Technologies 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 International Business and Kontrol Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Kontrol Technologies Corp, you can compare the effects of market volatilities on International Business and Kontrol Technologies 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 International Business with a short position of Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Kontrol Technologies.
Diversification Opportunities for International Business and Kontrol Technologies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Kontrol is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp and International Business 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 International Business Machines are associated (or correlated) with Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of International Business i.e., International Business and Kontrol Technologies go up and down completely randomly.
Pair Corralation between International Business and Kontrol Technologies
Considering the 90-day investment horizon International Business is expected to generate 1.04 times less return on investment than Kontrol Technologies. But when comparing it to its historical volatility, International Business Machines is 8.75 times less risky than Kontrol Technologies. It trades about 0.39 of its potential returns per unit of risk. Kontrol Technologies Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Kontrol Technologies Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Kontrol Technologies Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Kontrol Technologies Corp
Performance |
| Timeline |
| International Business |
| Kontrol Technologies Corp |
International Business and Kontrol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Kontrol Technologies
The main advantage of trading using opposite International Business and Kontrol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Kontrol Technologies 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 Kontrol Technologies will offset losses from the drop in Kontrol Technologies' long position.| International Business vs. RLJ Lodging Trust | International Business vs. Aquagold International | International Business vs. Stepstone Group | International Business vs. Morningstar Unconstrained Allocation |
| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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