Correlation Between KION Group and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both KION Group and Grupo Carso 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 KION Group and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KION Group AG and Grupo Carso SAB, you can compare the effects of market volatilities on KION Group and Grupo Carso 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 KION Group with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of KION Group and Grupo Carso.
Diversification Opportunities for KION Group and Grupo Carso
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KION and Grupo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and KION Group 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 KION Group AG are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of KION Group i.e., KION Group and Grupo Carso go up and down completely randomly.
Pair Corralation between KION Group and Grupo Carso
Assuming the 90 days horizon KION Group is expected to generate 1.76 times less return on investment than Grupo Carso. But when comparing it to its historical volatility, KION Group AG is 1.51 times less risky than Grupo Carso. It trades about 0.03 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 445.00 in Grupo Carso SAB on August 25, 2024 and sell it today you would earn a total of 80.00 from holding Grupo Carso SAB or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KION Group AG vs. Grupo Carso SAB
Performance |
| Timeline |
| KION Group AG |
| Grupo Carso SAB |
KION Group and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KION Group and Grupo Carso
The main advantage of trading using opposite KION Group and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| KION Group vs. Grupo Carso SAB | KION Group vs. THAI BEVERAGE | KION Group vs. GRUPO CARSO A1 | KION Group vs. JAPAN TOBACCO UNSPADR12 |
| Grupo Carso vs. Superior Plus Corp | Grupo Carso vs. NMI Holdings | Grupo Carso vs. Origin Agritech | Grupo Carso vs. SIVERS SEMICONDUCTORS AB |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |