Correlation Between Kirin Holdings and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Kirin Holdings and Suntory Beverage 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 Kirin Holdings and Suntory Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirin Holdings and Suntory Beverage Food, you can compare the effects of market volatilities on Kirin Holdings and Suntory Beverage 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 Kirin Holdings with a short position of Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirin Holdings and Suntory Beverage.
Diversification Opportunities for Kirin Holdings and Suntory Beverage
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kirin and Suntory is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kirin Holdings and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food and Kirin Holdings 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 Kirin Holdings are associated (or correlated) with Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Kirin Holdings i.e., Kirin Holdings and Suntory Beverage go up and down completely randomly.
Pair Corralation between Kirin Holdings and Suntory Beverage
Assuming the 90 days horizon Kirin Holdings is expected to generate 2.46 times less return on investment than Suntory Beverage. But when comparing it to its historical volatility, Kirin Holdings is 1.52 times less risky than Suntory Beverage. It trades about 0.06 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,964 in Suntory Beverage Food on September 12, 2024 and sell it today you would earn a total of 114.00 from holding Suntory Beverage Food or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirin Holdings vs. Suntory Beverage Food
Performance |
| Timeline |
| Kirin Holdings |
| Suntory Beverage Food |
Kirin Holdings and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirin Holdings and Suntory Beverage
The main advantage of trading using opposite Kirin Holdings and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirin Holdings position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Kirin Holdings vs. Micron Technology | Kirin Holdings vs. X FAB Silicon Foundries | Kirin Holdings vs. Charter Communications | Kirin Holdings vs. Entravision Communications |
| Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. SIVERS SEMICONDUCTORS AB | Suntory Beverage vs. NorAm Drilling AS | Suntory Beverage vs. Norsk Hydro ASA |
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.
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