Correlation Between Kancera AB and AAC Clyde
Can any of the company-specific risk be diversified away by investing in both Kancera AB and AAC Clyde 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 Kancera AB and AAC Clyde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and AAC Clyde Space, you can compare the effects of market volatilities on Kancera AB and AAC Clyde 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 Kancera AB with a short position of AAC Clyde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and AAC Clyde.
Diversification Opportunities for Kancera AB and AAC Clyde
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kancera and AAC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space and Kancera AB 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 Kancera AB are associated (or correlated) with AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of Kancera AB i.e., Kancera AB and AAC Clyde go up and down completely randomly.
Pair Corralation between Kancera AB and AAC Clyde
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the AAC Clyde. But the stock apears to be less risky and, when comparing its historical volatility, Kancera AB is 8.42 times less risky than AAC Clyde. The stock trades about -0.03 of its potential returns per unit of risk. The AAC Clyde Space is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 68.00 in AAC Clyde Space on August 26, 2024 and sell it today you would earn a total of 4,537 from holding AAC Clyde Space or generate 6672.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. AAC Clyde Space
Performance |
| Timeline |
| Kancera AB |
| AAC Clyde Space |
Kancera AB and AAC Clyde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and AAC Clyde
The main advantage of trading using opposite Kancera AB and AAC Clyde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, AAC Clyde 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 AAC Clyde will offset losses from the drop in AAC Clyde's long position.| Kancera AB vs. Bavarian Nordic | Kancera AB vs. BioPorto | Kancera AB vs. Zaptec AS | Kancera AB vs. cBrain AS |
| AAC Clyde vs. aXichem AB | AAC Clyde vs. Gaming Corps AB | AAC Clyde vs. Cantargia AB | AAC Clyde vs. KABE Group AB |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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