Correlation Between Kindred Group and Cinis Fertilizer
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By analyzing existing cross correlation between Kindred Group plc and Cinis Fertilizer AB, you can compare the effects of market volatilities on Kindred Group and Cinis Fertilizer 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 Kindred Group with a short position of Cinis Fertilizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kindred Group and Cinis Fertilizer.
Diversification Opportunities for Kindred Group and Cinis Fertilizer
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kindred and Cinis is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kindred Group plc and Cinis Fertilizer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinis Fertilizer and Kindred 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 Kindred Group plc are associated (or correlated) with Cinis Fertilizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinis Fertilizer has no effect on the direction of Kindred Group i.e., Kindred Group and Cinis Fertilizer go up and down completely randomly.
Pair Corralation between Kindred Group and Cinis Fertilizer
Assuming the 90 days trading horizon Kindred Group plc is expected to generate 0.37 times more return on investment than Cinis Fertilizer. However, Kindred Group plc is 2.71 times less risky than Cinis Fertilizer. It trades about 0.02 of its potential returns per unit of risk. Cinis Fertilizer AB is currently generating about -0.06 per unit of risk. If you would invest 12,030 in Kindred Group plc on August 31, 2024 and sell it today you would earn a total of 880.00 from holding Kindred Group plc or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.55% |
| Values | Daily Returns |
Kindred Group plc vs. Cinis Fertilizer AB
Performance |
| Timeline |
| Kindred Group plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Cinis Fertilizer |
Kindred Group and Cinis Fertilizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kindred Group and Cinis Fertilizer
The main advantage of trading using opposite Kindred Group and Cinis Fertilizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kindred Group position performs unexpectedly, Cinis Fertilizer 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 Cinis Fertilizer will offset losses from the drop in Cinis Fertilizer's long position.The idea behind Kindred Group plc and Cinis Fertilizer AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cinis Fertilizer vs. TradeDoubler AB | Cinis Fertilizer vs. Neola Medical AB | Cinis Fertilizer vs. Beowulf Mining PLC | Cinis Fertilizer vs. Fractal Gaming Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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