Correlation Between Keepers Holdings and Alliance Select
Can any of the company-specific risk be diversified away by investing in both Keepers Holdings and Alliance Select 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 Keepers Holdings and Alliance Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keepers Holdings and Alliance Select Foods, you can compare the effects of market volatilities on Keepers Holdings and Alliance Select 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 Keepers Holdings with a short position of Alliance Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keepers Holdings and Alliance Select.
Diversification Opportunities for Keepers Holdings and Alliance Select
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Keepers and Alliance is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and Alliance Select Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Select Foods and Keepers Holdings 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 Keepers Holdings are associated (or correlated) with Alliance Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Select Foods has no effect on the direction of Keepers Holdings i.e., Keepers Holdings and Alliance Select go up and down completely randomly.
Pair Corralation between Keepers Holdings and Alliance Select
Assuming the 90 days trading horizon Keepers Holdings is expected to generate 3.41 times less return on investment than Alliance Select. In addition to that, Keepers Holdings is 1.26 times more volatile than Alliance Select Foods. It trades about 0.12 of its total potential returns per unit of risk. Alliance Select Foods is currently generating about 0.5 per unit of volatility. If you would invest 39.00 in Alliance Select Foods on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Alliance Select Foods or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
Keepers Holdings vs. Alliance Select Foods
Performance |
| Timeline |
| Keepers Holdings |
| Alliance Select Foods |
Risk-Adjusted Performance
Modest
Weak | Strong |
Keepers Holdings and Alliance Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keepers Holdings and Alliance Select
The main advantage of trading using opposite Keepers Holdings and Alliance Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keepers Holdings position performs unexpectedly, Alliance Select 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 Alliance Select will offset losses from the drop in Alliance Select's long position.| Keepers Holdings vs. Swift Foods | Keepers Holdings vs. Union Bank of | Keepers Holdings vs. Asia United Bank | Keepers Holdings vs. Lepanto Consolidated Mining |
| Alliance Select vs. Atlas Consolidated Mining | Alliance Select vs. East West Banking | Alliance Select vs. Lepanto Consolidated Mining | Alliance Select vs. Philex Mining 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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