Correlation Between Kitron ASA and Gaming Innovation
Can any of the company-specific risk be diversified away by investing in both Kitron ASA and Gaming Innovation 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 Kitron ASA and Gaming Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kitron ASA and Gaming Innovation Group, you can compare the effects of market volatilities on Kitron ASA and Gaming Innovation 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 Kitron ASA with a short position of Gaming Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kitron ASA and Gaming Innovation.
Diversification Opportunities for Kitron ASA and Gaming Innovation
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kitron and Gaming is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kitron ASA and Gaming Innovation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Innovation and Kitron ASA 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 Kitron ASA are associated (or correlated) with Gaming Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Innovation has no effect on the direction of Kitron ASA i.e., Kitron ASA and Gaming Innovation go up and down completely randomly.
Pair Corralation between Kitron ASA and Gaming Innovation
Assuming the 90 days trading horizon Kitron ASA is expected to generate 0.75 times more return on investment than Gaming Innovation. However, Kitron ASA is 1.33 times less risky than Gaming Innovation. It trades about 0.03 of its potential returns per unit of risk. Gaming Innovation Group is currently generating about 0.0 per unit of risk. If you would invest 3,124 in Kitron ASA on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Kitron ASA or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Kitron ASA vs. Gaming Innovation Group
Performance |
| Timeline |
| Kitron ASA |
| Gaming Innovation |
Kitron ASA and Gaming Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kitron ASA and Gaming Innovation
The main advantage of trading using opposite Kitron ASA and Gaming Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kitron ASA position performs unexpectedly, Gaming Innovation 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 Gaming Innovation will offset losses from the drop in Gaming Innovation's long position.| Kitron ASA vs. Europris ASA | Kitron ASA vs. Kongsberg Gruppen ASA | Kitron ASA vs. Nordic Semiconductor ASA | Kitron ASA vs. Storebrand ASA |
| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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