Correlation Between Klabin Sa and Clearwater Paper
Can any of the company-specific risk be diversified away by investing in both Klabin Sa and Clearwater Paper 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 Klabin Sa and Clearwater Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klabin Sa A and Clearwater Paper, you can compare the effects of market volatilities on Klabin Sa and Clearwater Paper 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 Klabin Sa with a short position of Clearwater Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klabin Sa and Clearwater Paper.
Diversification Opportunities for Klabin Sa and Clearwater Paper
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Klabin and Clearwater is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Klabin Sa A and Clearwater Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Paper and Klabin Sa 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 Klabin Sa A are associated (or correlated) with Clearwater Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Paper has no effect on the direction of Klabin Sa i.e., Klabin Sa and Clearwater Paper go up and down completely randomly.
Pair Corralation between Klabin Sa and Clearwater Paper
Assuming the 90 days horizon Klabin Sa A is expected to generate 0.75 times more return on investment than Clearwater Paper. However, Klabin Sa A is 1.33 times less risky than Clearwater Paper. It trades about -0.01 of its potential returns per unit of risk. Clearwater Paper is currently generating about -0.14 per unit of risk. If you would invest 781.00 in Klabin Sa A on August 25, 2024 and sell it today you would lose (47.00) from holding Klabin Sa A or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
Klabin Sa A vs. Clearwater Paper
Performance |
| Timeline |
| Klabin Sa A |
| Clearwater Paper |
Klabin Sa and Clearwater Paper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klabin Sa and Clearwater Paper
The main advantage of trading using opposite Klabin Sa and Clearwater Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klabin Sa position performs unexpectedly, Clearwater Paper 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 Clearwater Paper will offset losses from the drop in Clearwater Paper's long position.| Klabin Sa vs. Mondi PLC ADR | Klabin Sa vs. Suzano Papel e | Klabin Sa vs. Nine Dragons Paper | Klabin Sa vs. Nine Dragons Paper |
| Clearwater Paper vs. Sylvamo Corp | Clearwater Paper vs. Suzano Papel e | Clearwater Paper vs. Klabin Sa A | Clearwater Paper vs. Mercer International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |