Correlation Between Kion Group and Rev
Can any of the company-specific risk be diversified away by investing in both Kion Group and Rev 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 Rev 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 Rev Group, you can compare the effects of market volatilities on Kion Group and Rev 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 Rev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kion Group and Rev.
Diversification Opportunities for Kion Group and Rev
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kion and Rev is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kion Group AG and Rev Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rev 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 Rev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rev Group has no effect on the direction of Kion Group i.e., Kion Group and Rev go up and down completely randomly.
Pair Corralation between Kion Group and Rev
Assuming the 90 days horizon Kion Group AG is expected to under-perform the Rev. In addition to that, Kion Group is 1.02 times more volatile than Rev Group. It trades about -0.15 of its total potential returns per unit of risk. Rev Group is currently generating about 0.31 per unit of volatility. If you would invest 2,703 in Rev Group on September 4, 2024 and sell it today you would earn a total of 403.00 from holding Rev Group or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kion Group AG vs. Rev Group
Performance |
| Timeline |
| Kion Group AG |
| Rev Group |
Kion Group and Rev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kion Group and Rev
The main advantage of trading using opposite Kion Group and Rev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kion Group position performs unexpectedly, Rev 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 Rev will offset losses from the drop in Rev's long position.| Kion Group vs. Rev Group | Kion Group vs. Gencor Industries | Kion Group vs. Alamo Group | Kion Group vs. Wabash National |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |