Correlation Between Kip McGrath and Ras Technology
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Ras 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 Ras 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 Ras Technology Holdings, you can compare the effects of market volatilities on Kip McGrath and Ras 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Ras Technology.
Diversification Opportunities for Kip McGrath and Ras Technology
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kip and Ras is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology Holdings 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of Kip McGrath i.e., Kip McGrath and Ras Technology go up and down completely randomly.
Pair Corralation between Kip McGrath and Ras Technology
Assuming the 90 days trading horizon Kip McGrath Education is expected to under-perform the Ras Technology. In addition to that, Kip McGrath is 1.01 times more volatile than Ras Technology Holdings. It trades about 0.0 of its total potential returns per unit of risk. Ras Technology Holdings is currently generating about 0.06 per unit of volatility. If you would invest 46.00 in Ras Technology Holdings on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Ras Technology Holdings or generate 108.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Ras Technology Holdings
Performance |
| Timeline |
| Kip McGrath Education |
| Ras Technology Holdings |
Kip McGrath and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Ras Technology
The main advantage of trading using opposite Kip McGrath and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Ras 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 Ras Technology will offset losses from the drop in Ras Technology's long position.| Kip McGrath vs. Aneka Tambang Tbk | Kip McGrath vs. Macquarie Group | Kip McGrath vs. Macquarie Group Ltd | Kip McGrath vs. Challenger |
| Ras Technology vs. Aneka Tambang Tbk | Ras Technology vs. Unibail Rodamco Westfield SE | Ras Technology vs. Macquarie Group | Ras Technology vs. Commonwealth Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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