Correlation Between Kap Industrial and NewFunds MAPPS
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By analyzing existing cross correlation between Kap Industrial Holdings and NewFunds MAPPS Growth, you can compare the effects of market volatilities on Kap Industrial and NewFunds MAPPS 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 NewFunds MAPPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kap Industrial and NewFunds MAPPS.
Diversification Opportunities for Kap Industrial and NewFunds MAPPS
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kap and NewFunds is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kap Industrial Holdings and NewFunds MAPPS Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds MAPPS Growth 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 NewFunds MAPPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds MAPPS Growth has no effect on the direction of Kap Industrial i.e., Kap Industrial and NewFunds MAPPS go up and down completely randomly.
Pair Corralation between Kap Industrial and NewFunds MAPPS
Assuming the 90 days trading horizon Kap Industrial Holdings is expected to generate 3.07 times more return on investment than NewFunds MAPPS. However, Kap Industrial is 3.07 times more volatile than NewFunds MAPPS Growth. It trades about 0.09 of its potential returns per unit of risk. NewFunds MAPPS Growth is currently generating about 0.09 per unit of risk. If you would invest 25,500 in Kap Industrial Holdings on August 30, 2024 and sell it today you would earn a total of 7,500 from holding Kap Industrial Holdings or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kap Industrial Holdings vs. NewFunds MAPPS Growth
Performance |
| Timeline |
| Kap Industrial Holdings |
| NewFunds MAPPS Growth |
Kap Industrial and NewFunds MAPPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kap Industrial and NewFunds MAPPS
The main advantage of trading using opposite Kap Industrial and NewFunds MAPPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kap Industrial position performs unexpectedly, NewFunds MAPPS 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 NewFunds MAPPS will offset losses from the drop in NewFunds MAPPS's long position.| Kap Industrial vs. Bytes Technology | Kap Industrial vs. Reinet Investments SCA | Kap Industrial vs. Brimstone Investment | Kap Industrial vs. Deneb Investments |
| NewFunds MAPPS vs. NewFunds GOVI Exchange | NewFunds MAPPS vs. NewFunds Shariah Top | NewFunds MAPPS vs. NewFunds Low Volatility | NewFunds MAPPS vs. NewFunds TRACI 3 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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