Correlation Between Keynote Financial and Avonmore Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between Keynote Financial Services and Avonmore Capital Management, you can compare the effects of market volatilities on Keynote Financial and Avonmore Capital 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 Keynote Financial with a short position of Avonmore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keynote Financial and Avonmore Capital.
Diversification Opportunities for Keynote Financial and Avonmore Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Keynote and Avonmore is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Keynote Financial Services and Avonmore Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avonmore Capital Man and Keynote Financial 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 Keynote Financial Services are associated (or correlated) with Avonmore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avonmore Capital Man has no effect on the direction of Keynote Financial i.e., Keynote Financial and Avonmore Capital go up and down completely randomly.
Pair Corralation between Keynote Financial and Avonmore Capital
Assuming the 90 days trading horizon Keynote Financial Services is expected to under-perform the Avonmore Capital. But the stock apears to be less risky and, when comparing its historical volatility, Keynote Financial Services is 2.18 times less risky than Avonmore Capital. The stock trades about -0.28 of its potential returns per unit of risk. The Avonmore Capital Management is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,539 in Avonmore Capital Management on August 29, 2024 and sell it today you would earn a total of 119.00 from holding Avonmore Capital Management or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keynote Financial Services vs. Avonmore Capital Management
Performance |
| Timeline |
| Keynote Financial |
| Avonmore Capital Man |
Keynote Financial and Avonmore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keynote Financial and Avonmore Capital
The main advantage of trading using opposite Keynote Financial and Avonmore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keynote Financial position performs unexpectedly, Avonmore Capital 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 Avonmore Capital will offset losses from the drop in Avonmore Capital's long position.| Keynote Financial vs. UTI Asset Management | Keynote Financial vs. SIL Investments Limited | Keynote Financial vs. ADF Foods Limited | Keynote Financial vs. EMBASSY OFFICE PARKS |
| Avonmore Capital vs. Kingfa Science Technology | Avonmore Capital vs. Rico Auto Industries | Avonmore Capital vs. GACM Technologies Limited | Avonmore Capital vs. COSMO FIRST LIMITED |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |