Correlation Between K2 Asset and Althea Group
Can any of the company-specific risk be diversified away by investing in both K2 Asset and Althea 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 K2 Asset and Althea Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K2 Asset Management and Althea Group Holdings, you can compare the effects of market volatilities on K2 Asset and Althea 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 K2 Asset with a short position of Althea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of K2 Asset and Althea Group.
Diversification Opportunities for K2 Asset and Althea Group
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KAM and Althea is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding K2 Asset Management and Althea Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Althea Group Holdings and K2 Asset 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 K2 Asset Management are associated (or correlated) with Althea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Althea Group Holdings has no effect on the direction of K2 Asset i.e., K2 Asset and Althea Group go up and down completely randomly.
Pair Corralation between K2 Asset and Althea Group
If you would invest 7.10 in K2 Asset Management on November 2, 2024 and sell it today you would earn a total of 0.20 from holding K2 Asset Management or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
K2 Asset Management vs. Althea Group Holdings
Performance |
Timeline |
K2 Asset Management |
Althea Group Holdings |
K2 Asset and Althea Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with K2 Asset and Althea Group
The main advantage of trading using opposite K2 Asset and Althea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K2 Asset position performs unexpectedly, Althea 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 Althea Group will offset losses from the drop in Althea Group's long position.K2 Asset vs. Aneka Tambang Tbk | K2 Asset vs. BHP Group Limited | K2 Asset vs. Ecofibre | K2 Asset vs. iShares Global Healthcare |
Althea Group vs. Super Retail Group | Althea Group vs. Liberty Financial Group | Althea Group vs. Magellan Financial Group | Althea Group vs. Retail Food 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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