Correlation Between Klinique Med and Gunkul Engineering
Can any of the company-specific risk be diversified away by investing in both Klinique Med and Gunkul Engineering 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 Klinique Med and Gunkul Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Klinique Med and Gunkul Engineering Public, you can compare the effects of market volatilities on Klinique Med and Gunkul Engineering 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 Klinique Med with a short position of Gunkul Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klinique Med and Gunkul Engineering.
Diversification Opportunities for Klinique Med and Gunkul Engineering
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Klinique and Gunkul is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Klinique Med and Gunkul Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunkul Engineering Public and Klinique Med 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 The Klinique Med are associated (or correlated) with Gunkul Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunkul Engineering Public has no effect on the direction of Klinique Med i.e., Klinique Med and Gunkul Engineering go up and down completely randomly.
Pair Corralation between Klinique Med and Gunkul Engineering
Assuming the 90 days trading horizon The Klinique Med is expected to under-perform the Gunkul Engineering. But the stock apears to be less risky and, when comparing its historical volatility, The Klinique Med is 1.17 times less risky than Gunkul Engineering. The stock trades about -0.08 of its potential returns per unit of risk. The Gunkul Engineering Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Gunkul Engineering Public on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Gunkul Engineering Public or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Klinique Med vs. Gunkul Engineering Public
Performance |
| Timeline |
| Klinique Med |
| Gunkul Engineering Public |
Klinique Med and Gunkul Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klinique Med and Gunkul Engineering
The main advantage of trading using opposite Klinique Med and Gunkul Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klinique Med position performs unexpectedly, Gunkul Engineering 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 Gunkul Engineering will offset losses from the drop in Gunkul Engineering's long position.| Klinique Med vs. Com7 PCL | Klinique Med vs. Gunkul Engineering Public | Klinique Med vs. i Tail Corp PCL | Klinique Med vs. Sappe Public |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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