Correlation Between Kip McGrath and Credit Corp
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Credit Corp 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 Credit Corp 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 Credit Corp Group, you can compare the effects of market volatilities on Kip McGrath and Credit Corp 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 Credit Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Credit Corp.
Diversification Opportunities for Kip McGrath and Credit Corp
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kip and Credit is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Credit Corp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Corp Group 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 Credit Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Corp Group has no effect on the direction of Kip McGrath i.e., Kip McGrath and Credit Corp go up and down completely randomly.
Pair Corralation between Kip McGrath and Credit Corp
Assuming the 90 days trading horizon Kip McGrath Education is expected to generate 1.43 times more return on investment than Credit Corp. However, Kip McGrath is 1.43 times more volatile than Credit Corp Group. It trades about 0.13 of its potential returns per unit of risk. Credit Corp Group is currently generating about 0.09 per unit of risk. If you would invest 32.00 in Kip McGrath Education on September 3, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Credit Corp Group
Performance |
| Timeline |
| Kip McGrath Education |
| Credit Corp Group |
Kip McGrath and Credit Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Credit Corp
The main advantage of trading using opposite Kip McGrath and Credit Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Credit Corp 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 Credit Corp will offset losses from the drop in Credit Corp's long position.| Kip McGrath vs. Aurelia Metals | Kip McGrath vs. MetalsGrove Mining | Kip McGrath vs. EROAD | Kip McGrath vs. Duxton Broadacre Farms |
| Credit Corp vs. MA Financial Group | Credit Corp vs. Iron Road | Credit Corp vs. Super Retail Group | Credit Corp vs. Dexus Convenience Retail |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |