Correlation Between Klckner Co and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Klckner Co and FEMALE HEALTH 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 Klckner Co and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klckner Co SE and FEMALE HEALTH, you can compare the effects of market volatilities on Klckner Co and FEMALE HEALTH 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 Klckner Co with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klckner Co and FEMALE HEALTH.
Diversification Opportunities for Klckner Co and FEMALE HEALTH
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Klckner and FEMALE is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Klckner Co SE and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and Klckner Co 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 Klckner Co SE are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Klckner Co i.e., Klckner Co and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Klckner Co and FEMALE HEALTH
Assuming the 90 days horizon Klckner Co SE is expected to generate 0.39 times more return on investment than FEMALE HEALTH. However, Klckner Co SE is 2.58 times less risky than FEMALE HEALTH. It trades about 0.18 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.03 per unit of risk. If you would invest 447.00 in Klckner Co SE on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Klckner Co SE or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Klckner Co SE vs. FEMALE HEALTH
Performance |
| Timeline |
| Klckner Co SE |
| FEMALE HEALTH |
Klckner Co and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klckner Co and FEMALE HEALTH
The main advantage of trading using opposite Klckner Co and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klckner Co position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Klckner Co vs. LG Display Co | Klckner Co vs. Tencent Music Entertainment | Klckner Co vs. JD SPORTS FASH | Klckner Co vs. PT Bank Maybank |
| FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc |
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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