Correlation Between Kewaunee Scientific and Aterian
Can any of the company-specific risk be diversified away by investing in both Kewaunee Scientific and Aterian 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 Kewaunee Scientific and Aterian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kewaunee Scientific and Aterian, you can compare the effects of market volatilities on Kewaunee Scientific and Aterian 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 Kewaunee Scientific with a short position of Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kewaunee Scientific and Aterian.
Diversification Opportunities for Kewaunee Scientific and Aterian
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kewaunee and Aterian is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kewaunee Scientific and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian and Kewaunee Scientific 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 Kewaunee Scientific are associated (or correlated) with Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of Kewaunee Scientific i.e., Kewaunee Scientific and Aterian go up and down completely randomly.
Pair Corralation between Kewaunee Scientific and Aterian
Given the investment horizon of 90 days Kewaunee Scientific is expected to generate 0.68 times more return on investment than Aterian. However, Kewaunee Scientific is 1.48 times less risky than Aterian. It trades about 0.1 of its potential returns per unit of risk. Aterian is currently generating about -0.05 per unit of risk. If you would invest 1,560 in Kewaunee Scientific on November 2, 2024 and sell it today you would earn a total of 4,835 from holding Kewaunee Scientific or generate 309.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.36% |
| Values | Daily Returns |
Kewaunee Scientific vs. Aterian
Performance |
| Timeline |
| Kewaunee Scientific |
| Aterian |
Kewaunee Scientific and Aterian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kewaunee Scientific and Aterian
The main advantage of trading using opposite Kewaunee Scientific and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kewaunee Scientific position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.| Kewaunee Scientific vs. Hamilton Beach Brands | Kewaunee Scientific vs. Mohawk Industries | Kewaunee Scientific vs. Whirlpool | Kewaunee Scientific vs. iRobot |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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