Correlation Between Kinepolis Group and Onward Medical
Can any of the company-specific risk be diversified away by investing in both Kinepolis Group and Onward Medical 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 Kinepolis Group and Onward Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinepolis Group NV and Onward Medical NV, you can compare the effects of market volatilities on Kinepolis Group and Onward Medical 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 Kinepolis Group with a short position of Onward Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinepolis Group and Onward Medical.
Diversification Opportunities for Kinepolis Group and Onward Medical
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinepolis and Onward is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinepolis Group NV and Onward Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onward Medical NV and Kinepolis 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 Kinepolis Group NV are associated (or correlated) with Onward Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onward Medical NV has no effect on the direction of Kinepolis Group i.e., Kinepolis Group and Onward Medical go up and down completely randomly.
Pair Corralation between Kinepolis Group and Onward Medical
Assuming the 90 days trading horizon Kinepolis Group NV is expected to generate 0.66 times more return on investment than Onward Medical. However, Kinepolis Group NV is 1.51 times less risky than Onward Medical. It trades about 0.01 of its potential returns per unit of risk. Onward Medical NV is currently generating about -0.03 per unit of risk. If you would invest 3,680 in Kinepolis Group NV on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Kinepolis Group NV or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinepolis Group NV vs. Onward Medical NV
Performance |
| Timeline |
| Kinepolis Group NV |
| Onward Medical NV |
Kinepolis Group and Onward Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinepolis Group and Onward Medical
The main advantage of trading using opposite Kinepolis Group and Onward Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinepolis Group position performs unexpectedly, Onward Medical 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 Onward Medical will offset losses from the drop in Onward Medical's long position.| Kinepolis Group vs. Retail Estates | Kinepolis Group vs. Onward Medical NV | Kinepolis Group vs. Shurgard Self Storage | Kinepolis Group vs. Vastned Retail Belgium |
| Onward Medical vs. Jensen Group | Onward Medical vs. Deceuninck | Onward Medical vs. Biocartis Group NV | Onward Medical vs. Exmar NV |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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