Correlation Between IONQ and Kion Group
Can any of the company-specific risk be diversified away by investing in both IONQ and Kion Group 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 IONQ and Kion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IONQ Inc and Kion Group AG, you can compare the effects of market volatilities on IONQ and Kion Group 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 IONQ with a short position of Kion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IONQ and Kion Group.
Diversification Opportunities for IONQ and Kion Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IONQ and Kion is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding IONQ Inc and Kion Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kion Group AG and IONQ 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 IONQ Inc are associated (or correlated) with Kion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kion Group AG has no effect on the direction of IONQ i.e., IONQ and Kion Group go up and down completely randomly.
Pair Corralation between IONQ and Kion Group
Given the investment horizon of 90 days IONQ is expected to generate 1.59 times less return on investment than Kion Group. In addition to that, IONQ is 4.32 times more volatile than Kion Group AG. It trades about 0.03 of its total potential returns per unit of risk. Kion Group AG is currently generating about 0.23 per unit of volatility. If you would invest 803.00 in Kion Group AG on November 2, 2024 and sell it today you would earn a total of 113.00 from holding Kion Group AG or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IONQ Inc vs. Kion Group AG
Performance |
| Timeline |
| IONQ Inc |
| Kion Group AG |
IONQ and Kion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IONQ and Kion Group
The main advantage of trading using opposite IONQ and Kion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IONQ position performs unexpectedly, Kion Group 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 Kion Group will offset losses from the drop in Kion Group's long position.The idea behind IONQ Inc and Kion Group AG 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.| Kion Group vs. Xos Inc | Kion Group vs. Nikola Corp | Kion Group vs. Ideanomics | Kion Group vs. Hydrofarm Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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