Correlation Between KBR and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both KBR and ACS Actividades 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 KBR and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBR Inc and ACS Actividades de, you can compare the effects of market volatilities on KBR and ACS Actividades 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 KBR with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBR and ACS Actividades.
Diversification Opportunities for KBR and ACS Actividades
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between KBR and ACS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KBR Inc and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and KBR 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 KBR Inc are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of KBR i.e., KBR and ACS Actividades go up and down completely randomly.
Pair Corralation between KBR and ACS Actividades
Considering the 90-day investment horizon KBR is expected to generate 7.18 times less return on investment than ACS Actividades. But when comparing it to its historical volatility, KBR Inc is 1.0 times less risky than ACS Actividades. It trades about 0.01 of its potential returns per unit of risk. ACS Actividades de is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,060 in ACS Actividades de on September 1, 2024 and sell it today you would earn a total of 473.00 from holding ACS Actividades de or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.94% |
| Values | Daily Returns |
KBR Inc vs. ACS Actividades de
Performance |
| Timeline |
| KBR Inc |
| ACS Actividades de |
KBR and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBR and ACS Actividades
The main advantage of trading using opposite KBR and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBR position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.The idea behind KBR Inc and ACS Actividades de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ACS Actividades vs. Orion Group Holdings | ACS Actividades vs. Agrify Corp | ACS Actividades vs. Matrix Service Co | ACS Actividades vs. MYR 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |