Correlation Between K Bro and Gamehost
Can any of the company-specific risk be diversified away by investing in both K Bro and Gamehost 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 K Bro and Gamehost into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K Bro Linen and Gamehost, you can compare the effects of market volatilities on K Bro and Gamehost 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 K Bro with a short position of Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of K Bro and Gamehost.
Diversification Opportunities for K Bro and Gamehost
Average diversification
The 3 months correlation between KBL and Gamehost is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding K Bro Linen and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and K Bro 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 K Bro Linen are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of K Bro i.e., K Bro and Gamehost go up and down completely randomly.
Pair Corralation between K Bro and Gamehost
Assuming the 90 days trading horizon K Bro is expected to generate 1.05 times less return on investment than Gamehost. In addition to that, K Bro is 1.21 times more volatile than Gamehost. It trades about 0.05 of its total potential returns per unit of risk. Gamehost is currently generating about 0.07 per unit of volatility. If you would invest 734.00 in Gamehost on August 30, 2024 and sell it today you would earn a total of 337.00 from holding Gamehost or generate 45.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K Bro Linen vs. Gamehost
Performance |
| Timeline |
| K Bro Linen |
| Gamehost |
K Bro and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K Bro and Gamehost
The main advantage of trading using opposite K Bro and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K Bro position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| K Bro vs. Richards Packaging Income | K Bro vs. Ag Growth International | K Bro vs. Information Services | K Bro vs. Pollard Banknote Limited |
| Gamehost vs. Chesswood Group Limited | Gamehost vs. Medical Facilities | Gamehost vs. Information Services | Gamehost vs. K Bro Linen |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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