Correlation Between Klabin SA and Airbnb
Can any of the company-specific risk be diversified away by investing in both Klabin SA and Airbnb 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 Airbnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klabin SA and Airbnb Inc, you can compare the effects of market volatilities on Klabin SA and Airbnb 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 Airbnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klabin SA and Airbnb.
Diversification Opportunities for Klabin SA and Airbnb
Very good diversification
The 3 months correlation between Klabin and Airbnb is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Klabin SA and Airbnb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbnb Inc 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 are associated (or correlated) with Airbnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbnb Inc has no effect on the direction of Klabin SA i.e., Klabin SA and Airbnb go up and down completely randomly.
Pair Corralation between Klabin SA and Airbnb
Assuming the 90 days trading horizon Klabin SA is expected to generate 0.48 times more return on investment than Airbnb. However, Klabin SA is 2.08 times less risky than Airbnb. It trades about 0.17 of its potential returns per unit of risk. Airbnb Inc is currently generating about 0.06 per unit of risk. If you would invest 405.00 in Klabin SA on August 30, 2024 and sell it today you would earn a total of 27.00 from holding Klabin SA or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klabin SA vs. Airbnb Inc
Performance |
| Timeline |
| Klabin SA |
| Airbnb Inc |
Klabin SA and Airbnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klabin SA and Airbnb
The main advantage of trading using opposite Klabin SA and Airbnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klabin SA position performs unexpectedly, Airbnb 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 Airbnb will offset losses from the drop in Airbnb's long position.| Klabin SA vs. Klabin SA | Klabin SA vs. Transmissora Aliana de | Klabin SA vs. Klabin SA | Klabin SA vs. Itasa Investimentos |
| Airbnb vs. Unity Software | Airbnb vs. Palantir Technologies | Airbnb vs. BIONTECH SE DRN | Airbnb vs. Unifique Telecomunicaes SA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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