Correlation Between Kip McGrath and Cardno
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Cardno 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 Cardno 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 Cardno, you can compare the effects of market volatilities on Kip McGrath and Cardno 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 Cardno. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Cardno.
Diversification Opportunities for Kip McGrath and Cardno
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kip and Cardno is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Cardno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardno 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 Cardno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardno has no effect on the direction of Kip McGrath i.e., Kip McGrath and Cardno go up and down completely randomly.
Pair Corralation between Kip McGrath and Cardno
Assuming the 90 days trading horizon Kip McGrath is expected to generate 2.93 times less return on investment than Cardno. But when comparing it to its historical volatility, Kip McGrath Education is 3.87 times less risky than Cardno. It trades about 0.41 of its potential returns per unit of risk. Cardno is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cardno on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Cardno or generate 64.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Cardno
Performance |
| Timeline |
| Kip McGrath Education |
| Cardno |
Kip McGrath and Cardno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Cardno
The main advantage of trading using opposite Kip McGrath and Cardno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Cardno 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 Cardno will offset losses from the drop in Cardno's long position.| Kip McGrath vs. Aurelia Metals | Kip McGrath vs. MetalsGrove Mining | Kip McGrath vs. EROAD | Kip McGrath vs. Duxton Broadacre Farms |
| Cardno vs. Jupiter Energy | Cardno vs. WA1 Resources | Cardno vs. Predictive Discovery | Cardno vs. Cooper 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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