Correlation Between Kip McGrath and Argo Investments
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Argo Investments 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 Kip McGrath and Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kip McGrath Education and Argo Investments, you can compare the effects of market volatilities on Kip McGrath and Argo Investments 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 Kip McGrath with a short position of Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Argo Investments.
Diversification Opportunities for Kip McGrath and Argo Investments
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kip and Argo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments and Kip McGrath 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 Kip McGrath Education are associated (or correlated) with Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of Kip McGrath i.e., Kip McGrath and Argo Investments go up and down completely randomly.
Pair Corralation between Kip McGrath and Argo Investments
Assuming the 90 days trading horizon Kip McGrath Education is expected to generate 5.51 times more return on investment than Argo Investments. However, Kip McGrath is 5.51 times more volatile than Argo Investments. It trades about 0.13 of its potential returns per unit of risk. Argo Investments is currently generating about 0.09 per unit of risk. If you would invest 32.00 in Kip McGrath Education on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Kip McGrath Education or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Argo Investments
Performance |
| Timeline |
| Kip McGrath Education |
| Argo Investments |
Kip McGrath and Argo Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Argo Investments
The main advantage of trading using opposite Kip McGrath and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Argo Investments 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 Argo Investments will offset losses from the drop in Argo Investments' long position.| Kip McGrath vs. Aneka Tambang Tbk | Kip McGrath vs. Macquarie Group | Kip McGrath vs. Macquarie Group Ltd | Kip McGrath vs. Challenger |
| Argo Investments vs. WA1 Resources | Argo Investments vs. Predictive Discovery | Argo Investments vs. Cooper Metals | Argo Investments vs. OD6 Metals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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