Correlation Between K2 Asset and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both K2 Asset and Maggie Beer 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 Maggie Beer 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 Maggie Beer Holdings, you can compare the effects of market volatilities on K2 Asset and Maggie Beer 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 Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of K2 Asset and Maggie Beer.
Diversification Opportunities for K2 Asset and Maggie Beer
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KAM and Maggie is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding K2 Asset Management and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer 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 Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of K2 Asset i.e., K2 Asset and Maggie Beer go up and down completely randomly.
Pair Corralation between K2 Asset and Maggie Beer
Assuming the 90 days trading horizon K2 Asset Management is expected to under-perform the Maggie Beer. But the stock apears to be less risky and, when comparing its historical volatility, K2 Asset Management is 1.65 times less risky than Maggie Beer. The stock trades about -0.24 of its potential returns per unit of risk. The Maggie Beer Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 5.30 in Maggie Beer Holdings on October 15, 2024 and sell it today you would earn a total of 0.50 from holding Maggie Beer Holdings or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
K2 Asset Management vs. Maggie Beer Holdings
Performance |
| Timeline |
| K2 Asset Management |
| Maggie Beer Holdings |
K2 Asset and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K2 Asset and Maggie Beer
The main advantage of trading using opposite K2 Asset and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K2 Asset position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| K2 Asset vs. oOhMedia | K2 Asset vs. Auctus Alternative Investments | K2 Asset vs. Diversified United Investment | K2 Asset vs. Hotel Property Investments |
| Maggie Beer vs. Data3 | Maggie Beer vs. Platinum Asset Management | Maggie Beer vs. Embark Education Group | Maggie Beer vs. Janison Education 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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