Correlation Between Kobayashi Pharmaceutical and Stagwell
Can any of the company-specific risk be diversified away by investing in both Kobayashi Pharmaceutical and Stagwell 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 Kobayashi Pharmaceutical and Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kobayashi Pharmaceutical Co and Stagwell, you can compare the effects of market volatilities on Kobayashi Pharmaceutical and Stagwell 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 Kobayashi Pharmaceutical with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kobayashi Pharmaceutical and Stagwell.
Diversification Opportunities for Kobayashi Pharmaceutical and Stagwell
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kobayashi and Stagwell is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kobayashi Pharmaceutical Co and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and Kobayashi Pharmaceutical 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 Kobayashi Pharmaceutical Co are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Kobayashi Pharmaceutical i.e., Kobayashi Pharmaceutical and Stagwell go up and down completely randomly.
Pair Corralation between Kobayashi Pharmaceutical and Stagwell
If you would invest 621.00 in Stagwell on September 1, 2024 and sell it today you would earn a total of 165.00 from holding Stagwell or generate 26.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kobayashi Pharmaceutical Co vs. Stagwell
Performance |
| Timeline |
| Kobayashi Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stagwell |
Kobayashi Pharmaceutical and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kobayashi Pharmaceutical and Stagwell
The main advantage of trading using opposite Kobayashi Pharmaceutical and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kobayashi Pharmaceutical position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Kobayashi Pharmaceutical vs. Sun Country Airlines | Kobayashi Pharmaceutical vs. Stepstone Group | Kobayashi Pharmaceutical vs. Old Dominion Freight | Kobayashi Pharmaceutical vs. Procter Gamble |
| Stagwell vs. ADTRAN Inc | Stagwell vs. Belden Inc | Stagwell vs. ADC Therapeutics SA | Stagwell vs. Comtech Telecommunications Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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