Correlation Between Khiron Life and Haleon Plc
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Haleon Plc 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 Khiron Life and Haleon Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Haleon plc, you can compare the effects of market volatilities on Khiron Life and Haleon Plc 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 Khiron Life with a short position of Haleon Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Haleon Plc.
Diversification Opportunities for Khiron Life and Haleon Plc
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Khiron and Haleon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Haleon plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon plc and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Haleon Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon plc has no effect on the direction of Khiron Life i.e., Khiron Life and Haleon Plc go up and down completely randomly.
Pair Corralation between Khiron Life and Haleon Plc
Assuming the 90 days horizon Khiron Life Sciences is expected to generate 92.53 times more return on investment than Haleon Plc. However, Khiron Life is 92.53 times more volatile than Haleon plc. It trades about 0.15 of its potential returns per unit of risk. Haleon plc is currently generating about -0.04 per unit of risk. If you would invest 0.00 in Khiron Life Sciences on September 13, 2024 and sell it today you would earn a total of 0.01 from holding Khiron Life Sciences or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Khiron Life Sciences vs. Haleon plc
Performance |
| Timeline |
| Khiron Life Sciences |
| Haleon plc |
Khiron Life and Haleon Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Haleon Plc
The main advantage of trading using opposite Khiron Life and Haleon Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Haleon Plc 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 Haleon Plc will offset losses from the drop in Haleon Plc's long position.| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
| Haleon Plc vs. 4Front Ventures Corp | Haleon Plc vs. Khiron Life Sciences | Haleon Plc vs. BellRock Brands | Haleon Plc vs. Elixinol Global |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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