Correlation Between KASPIKZ (SPGDR and Square
Can any of the company-specific risk be diversified away by investing in both KASPIKZ (SPGDR and Square 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 KASPIKZ (SPGDR and Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KASPIKZ 1 and Square Inc, you can compare the effects of market volatilities on KASPIKZ (SPGDR and Square 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 KASPIKZ (SPGDR with a short position of Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of KASPIKZ (SPGDR and Square.
Diversification Opportunities for KASPIKZ (SPGDR and Square
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KASPIKZ and Square is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding KASPIKZ 1 and Square Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Square Inc and KASPIKZ (SPGDR 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 KASPIKZ 1 are associated (or correlated) with Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Square Inc has no effect on the direction of KASPIKZ (SPGDR i.e., KASPIKZ (SPGDR and Square go up and down completely randomly.
Pair Corralation between KASPIKZ (SPGDR and Square
Assuming the 90 days horizon KASPIKZ 1 is expected to under-perform the Square. But the stock apears to be less risky and, when comparing its historical volatility, KASPIKZ 1 is 1.51 times less risky than Square. The stock trades about -0.09 of its potential returns per unit of risk. The Square Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,230 in Square Inc on November 6, 2024 and sell it today you would earn a total of 1,533 from holding Square Inc or generate 21.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KASPIKZ 1 vs. Square Inc
Performance |
| Timeline |
| KASPIKZ (SPGDR |
| Square Inc |
KASPIKZ (SPGDR and Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KASPIKZ (SPGDR and Square
The main advantage of trading using opposite KASPIKZ (SPGDR and Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KASPIKZ (SPGDR position performs unexpectedly, Square 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 Square will offset losses from the drop in Square's long position.| KASPIKZ (SPGDR vs. Sibanye Stillwater Limited | KASPIKZ (SPGDR vs. Impala Platinum Holdings | KASPIKZ (SPGDR vs. Cellink AB | KASPIKZ (SPGDR vs. Mowi ASA |
| Square vs. Shopify | Square vs. BYD Company Limited | Square vs. PayPal Holdings | Square vs. Palantir Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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