Correlation Between Kap Industrial and CoreShares
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By analyzing existing cross correlation between Kap Industrial Holdings and CoreShares SP Global, you can compare the effects of market volatilities on Kap Industrial and CoreShares 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 Kap Industrial with a short position of CoreShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kap Industrial and CoreShares.
Diversification Opportunities for Kap Industrial and CoreShares
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kap and CoreShares is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kap Industrial Holdings and CoreShares SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares SP Global and Kap Industrial 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 Kap Industrial Holdings are associated (or correlated) with CoreShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares SP Global has no effect on the direction of Kap Industrial i.e., Kap Industrial and CoreShares go up and down completely randomly.
Pair Corralation between Kap Industrial and CoreShares
Assuming the 90 days trading horizon Kap Industrial Holdings is expected to under-perform the CoreShares. In addition to that, Kap Industrial is 1.8 times more volatile than CoreShares SP Global. It trades about -0.22 of its total potential returns per unit of risk. CoreShares SP Global is currently generating about 0.09 per unit of volatility. If you would invest 204,400 in CoreShares SP Global on August 28, 2024 and sell it today you would earn a total of 3,600 from holding CoreShares SP Global or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kap Industrial Holdings vs. CoreShares SP Global
Performance |
| Timeline |
| Kap Industrial Holdings |
| CoreShares SP Global |
Kap Industrial and CoreShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kap Industrial and CoreShares
The main advantage of trading using opposite Kap Industrial and CoreShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kap Industrial position performs unexpectedly, CoreShares 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 CoreShares will offset losses from the drop in CoreShares' long position.| Kap Industrial vs. ABSA Bank Limited | Kap Industrial vs. Astral Foods | Kap Industrial vs. Hosken Consolidated Investments | Kap Industrial vs. Trematon Capital Investments |
| CoreShares vs. CoreShares SP 500 | CoreShares vs. CoreShares Income AMETF | CoreShares vs. CoreShares Preference Share | CoreShares vs. CoreShares Yield Selected |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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