Correlation Between Kansai Electric and Wind Works
Can any of the company-specific risk be diversified away by investing in both Kansai Electric and Wind Works 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 Kansai Electric and Wind Works into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Kansai Electric and Wind Works Power, you can compare the effects of market volatilities on Kansai Electric and Wind Works 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 Kansai Electric with a short position of Wind Works. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kansai Electric and Wind Works.
Diversification Opportunities for Kansai Electric and Wind Works
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kansai and Wind is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Kansai Electric and Wind Works Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wind Works Power and Kansai Electric 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 The Kansai Electric are associated (or correlated) with Wind Works. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wind Works Power has no effect on the direction of Kansai Electric i.e., Kansai Electric and Wind Works go up and down completely randomly.
Pair Corralation between Kansai Electric and Wind Works
Assuming the 90 days horizon The Kansai Electric is expected to generate 0.47 times more return on investment than Wind Works. However, The Kansai Electric is 2.12 times less risky than Wind Works. It trades about 0.11 of its potential returns per unit of risk. Wind Works Power is currently generating about -0.04 per unit of risk. If you would invest 939.00 in The Kansai Electric on October 24, 2024 and sell it today you would earn a total of 609.00 from holding The Kansai Electric or generate 64.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.99% |
| Values | Daily Returns |
The Kansai Electric vs. Wind Works Power
Performance |
| Timeline |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wind Works Power |
Kansai Electric and Wind Works Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kansai Electric and Wind Works
The main advantage of trading using opposite Kansai Electric and Wind Works positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kansai Electric position performs unexpectedly, Wind Works 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 Wind Works will offset losses from the drop in Wind Works' long position.| Kansai Electric vs. BCE Inc | Kansai Electric vs. Pinterest | Kansai Electric vs. Tesla Inc | Kansai Electric vs. Modine Manufacturing |
| Wind Works vs. Alternus Energy Group | Wind Works vs. Mass Megawat Wind | Wind Works vs. Kansai Electric Power | Wind Works vs. VirExit 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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