Correlation Between Kolibri Global and Afya
Can any of the company-specific risk be diversified away by investing in both Kolibri Global and Afya 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 Kolibri Global and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kolibri Global Energy and Afya, you can compare the effects of market volatilities on Kolibri Global and Afya 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 Kolibri Global with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kolibri Global and Afya.
Diversification Opportunities for Kolibri Global and Afya
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kolibri and Afya is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kolibri Global Energy and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Kolibri Global 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 Kolibri Global Energy are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Kolibri Global i.e., Kolibri Global and Afya go up and down completely randomly.
Pair Corralation between Kolibri Global and Afya
Given the investment horizon of 90 days Kolibri Global Energy is expected to generate 0.93 times more return on investment than Afya. However, Kolibri Global Energy is 1.07 times less risky than Afya. It trades about 0.55 of its potential returns per unit of risk. Afya is currently generating about -0.12 per unit of risk. If you would invest 340.00 in Kolibri Global Energy on September 4, 2024 and sell it today you would earn a total of 89.00 from holding Kolibri Global Energy or generate 26.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kolibri Global Energy vs. Afya
Performance |
| Timeline |
| Kolibri Global Energy |
| Afya |
Kolibri Global and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kolibri Global and Afya
The main advantage of trading using opposite Kolibri Global and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kolibri Global position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Kolibri Global vs. Afya | Kolibri Global vs. Neogen | Kolibri Global vs. Cumberland Pharmaceuticals | Kolibri Global vs. Lincoln Educational Services |
| Afya vs. Laureate Education | Afya vs. Lincoln Educational Services | Afya vs. Adtalem Global Education | Afya vs. Strategic Education |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |