Correlation Between Keyware Technologies and Xior Student
Can any of the company-specific risk be diversified away by investing in both Keyware Technologies and Xior Student 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 Keyware Technologies and Xior Student into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keyware Technologies NV and Xior Student Housing, you can compare the effects of market volatilities on Keyware Technologies and Xior Student 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 Keyware Technologies with a short position of Xior Student. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keyware Technologies and Xior Student.
Diversification Opportunities for Keyware Technologies and Xior Student
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Keyware and Xior is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Keyware Technologies NV and Xior Student Housing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xior Student Housing and Keyware Technologies 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 Keyware Technologies NV are associated (or correlated) with Xior Student. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xior Student Housing has no effect on the direction of Keyware Technologies i.e., Keyware Technologies and Xior Student go up and down completely randomly.
Pair Corralation between Keyware Technologies and Xior Student
Assuming the 90 days trading horizon Keyware Technologies NV is expected to generate 1.2 times more return on investment than Xior Student. However, Keyware Technologies is 1.2 times more volatile than Xior Student Housing. It trades about 0.01 of its potential returns per unit of risk. Xior Student Housing is currently generating about -0.23 per unit of risk. If you would invest 79.00 in Keyware Technologies NV on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Keyware Technologies NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Keyware Technologies NV vs. Xior Student Housing
Performance |
| Timeline |
| Keyware Technologies |
| Xior Student Housing |
Keyware Technologies and Xior Student Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keyware Technologies and Xior Student
The main advantage of trading using opposite Keyware Technologies and Xior Student positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keyware Technologies position performs unexpectedly, Xior Student 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 Xior Student will offset losses from the drop in Xior Student's long position.| Keyware Technologies vs. Crescent NV | Keyware Technologies vs. Ion Beam Applications | Keyware Technologies vs. Nyrstar NV | Keyware Technologies vs. AGFA Gevaert NV |
| Xior Student vs. Aedifica | Xior Student vs. Cofinimmo SA | Xior Student vs. Care Property Invest | Xior Student vs. Warehouses de Pauw |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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