Correlation Between KENEDIX OFFICE and USWE SPORTS
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and USWE SPORTS 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 KENEDIX OFFICE and USWE SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and USWE SPORTS AB, you can compare the effects of market volatilities on KENEDIX OFFICE and USWE SPORTS 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 KENEDIX OFFICE with a short position of USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and USWE SPORTS.
Diversification Opportunities for KENEDIX OFFICE and USWE SPORTS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KENEDIX and USWE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and USWE SPORTS go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and USWE SPORTS
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.33 times more return on investment than USWE SPORTS. However, KENEDIX OFFICE INV is 3.07 times less risky than USWE SPORTS. It trades about -0.02 of its potential returns per unit of risk. USWE SPORTS AB is currently generating about -0.02 per unit of risk. If you would invest 107,000 in KENEDIX OFFICE INV on October 11, 2024 and sell it today you would lose (15,500) from holding KENEDIX OFFICE INV or give up 14.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. USWE SPORTS AB
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| USWE SPORTS AB |
KENEDIX OFFICE and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and USWE SPORTS
The main advantage of trading using opposite KENEDIX OFFICE and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| KENEDIX OFFICE vs. PULSION Medical Systems | KENEDIX OFFICE vs. Merit Medical Systems | KENEDIX OFFICE vs. BOSTON BEER A | KENEDIX OFFICE vs. Genertec Universal Medical |
| USWE SPORTS vs. China Datang | USWE SPORTS vs. Datadog | USWE SPORTS vs. KENEDIX OFFICE INV | USWE SPORTS vs. Tower One Wireless |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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