Correlation Between Kip McGrath and Patriot Battery
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Patriot Battery 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 Patriot Battery 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 Patriot Battery Metals, you can compare the effects of market volatilities on Kip McGrath and Patriot Battery 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 Patriot Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Patriot Battery.
Diversification Opportunities for Kip McGrath and Patriot Battery
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kip and Patriot is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Patriot Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patriot Battery Metals 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 Patriot Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patriot Battery Metals has no effect on the direction of Kip McGrath i.e., Kip McGrath and Patriot Battery go up and down completely randomly.
Pair Corralation between Kip McGrath and Patriot Battery
Assuming the 90 days trading horizon Kip McGrath Education is expected to generate 0.44 times more return on investment than Patriot Battery. However, Kip McGrath Education is 2.28 times less risky than Patriot Battery. It trades about 0.27 of its potential returns per unit of risk. Patriot Battery Metals is currently generating about -0.31 per unit of risk. If you would invest 41.00 in Kip McGrath Education on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Kip McGrath Education or generate 12.2% 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. Patriot Battery Metals
Performance |
| Timeline |
| Kip McGrath Education |
| Patriot Battery Metals |
Kip McGrath and Patriot Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Patriot Battery
The main advantage of trading using opposite Kip McGrath and Patriot Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Patriot Battery 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 Patriot Battery will offset losses from the drop in Patriot Battery's long position.| Kip McGrath vs. Global Health | Kip McGrath vs. Genetic Technologies | Kip McGrath vs. Fisher Paykel Healthcare | Kip McGrath vs. Readytech Holdings |
| Patriot Battery vs. Northern Star Resources | Patriot Battery vs. Evolution Mining | Patriot Battery vs. Aneka Tambang Tbk | Patriot Battery vs. De Grey Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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