Correlation Between KION Group and Shyft
Can any of the company-specific risk be diversified away by investing in both KION Group and Shyft 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 Shyft 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 The Shyft Group, you can compare the effects of market volatilities on KION Group and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of KION Group and Shyft.
Diversification Opportunities for KION Group and Shyft
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KION and Shyft is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of KION Group i.e., KION Group and Shyft go up and down completely randomly.
Pair Corralation between KION Group and Shyft
Assuming the 90 days horizon KION Group AG is expected to under-perform the Shyft. But the stock apears to be less risky and, when comparing its historical volatility, KION Group AG is 1.69 times less risky than Shyft. The stock trades about -0.09 of its potential returns per unit of risk. The The Shyft Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,146 in The Shyft Group on September 1, 2024 and sell it today you would earn a total of 184.00 from holding The Shyft Group or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KION Group AG vs. The Shyft Group
Performance |
| Timeline |
| KION Group AG |
| Shyft Group |
KION Group and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KION Group and Shyft
The main advantage of trading using opposite KION Group and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| KION Group vs. United Natural Foods | KION Group vs. Tianjin Capital Environmental | KION Group vs. CECO ENVIRONMENTAL | KION Group vs. NIPPON MEAT PACKERS |
| Shyft vs. Superior Plus Corp | Shyft vs. NMI Holdings | Shyft vs. Origin Agritech | Shyft 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |