Correlation Between Kip McGrath and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on Kip McGrath and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Dug Technology.
Diversification Opportunities for Kip McGrath and Dug Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kip and Dug is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Kip McGrath i.e., Kip McGrath and Dug Technology go up and down completely randomly.
Pair Corralation between Kip McGrath and Dug Technology
Assuming the 90 days trading horizon Kip McGrath Education is expected to generate 1.22 times more return on investment than Dug Technology. However, Kip McGrath is 1.22 times more volatile than Dug Technology. It trades about 0.02 of its potential returns per unit of risk. Dug Technology is currently generating about -0.07 per unit of risk. If you would invest 47.00 in Kip McGrath Education on November 3, 2024 and sell it today you would lose (1.00) from holding Kip McGrath Education or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kip McGrath Education vs. Dug Technology
Performance |
| Timeline |
| Kip McGrath Education |
| Dug Technology |
Kip McGrath and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Dug Technology
The main advantage of trading using opposite Kip McGrath and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Kip McGrath vs. MetalsGrove Mining | Kip McGrath vs. Black Rock Mining | Kip McGrath vs. Chalice Mining Limited | Kip McGrath vs. Collins Foods |
| Dug Technology vs. Computershare | Dug Technology vs. Aurelia Metals | Dug Technology vs. Centaurus Metals | Dug Technology vs. Cleanaway Waste Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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