Correlation Between KENEDIX OFFICE and SPECTRAL MEDICAL
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL 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 SPECTRAL MEDICAL, you can compare the effects of market volatilities on KENEDIX OFFICE and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and SPECTRAL MEDICAL.
Diversification Opportunities for KENEDIX OFFICE and SPECTRAL MEDICAL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between KENEDIX and SPECTRAL is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and SPECTRAL MEDICAL go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and SPECTRAL MEDICAL
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.33 times more return on investment than SPECTRAL MEDICAL. However, KENEDIX OFFICE INV is 3.03 times less risky than SPECTRAL MEDICAL. It trades about 0.04 of its potential returns per unit of risk. SPECTRAL MEDICAL is currently generating about 0.0 per unit of risk. If you would invest 87,500 in KENEDIX OFFICE INV on October 11, 2024 and sell it today you would earn a total of 2,000 from holding KENEDIX OFFICE INV or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. SPECTRAL MEDICAL
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| SPECTRAL MEDICAL |
KENEDIX OFFICE and SPECTRAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and SPECTRAL MEDICAL
The main advantage of trading using opposite KENEDIX OFFICE and SPECTRAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, SPECTRAL MEDICAL 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 SPECTRAL MEDICAL will offset losses from the drop in SPECTRAL MEDICAL's long position.| KENEDIX OFFICE vs. Shenandoah Telecommunications | KENEDIX OFFICE vs. GAMING FAC SA | KENEDIX OFFICE vs. ecotel communication ag | KENEDIX OFFICE vs. Singapore Telecommunications Limited |
| SPECTRAL MEDICAL vs. Thermo Fisher Scientific | SPECTRAL MEDICAL vs. Danaher | SPECTRAL MEDICAL vs. Siemens Healthineers AG | SPECTRAL MEDICAL vs. Agilent Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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