Correlation Between Kingsmen Creatives and Mid Atlantic
Can any of the company-specific risk be diversified away by investing in both Kingsmen Creatives and Mid Atlantic 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 Kingsmen Creatives and Mid Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen Creatives and Mid Atlantic Home Health, you can compare the effects of market volatilities on Kingsmen Creatives and Mid Atlantic 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 Kingsmen Creatives with a short position of Mid Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen Creatives and Mid Atlantic.
Diversification Opportunities for Kingsmen Creatives and Mid Atlantic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsmen and Mid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen Creatives and Mid Atlantic Home Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Atlantic Home and Kingsmen Creatives 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 Kingsmen Creatives are associated (or correlated) with Mid Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Atlantic Home has no effect on the direction of Kingsmen Creatives i.e., Kingsmen Creatives and Mid Atlantic go up and down completely randomly.
Pair Corralation between Kingsmen Creatives and Mid Atlantic
Assuming the 90 days horizon Kingsmen Creatives is expected to generate 0.84 times more return on investment than Mid Atlantic. However, Kingsmen Creatives is 1.19 times less risky than Mid Atlantic. It trades about 0.03 of its potential returns per unit of risk. Mid Atlantic Home Health is currently generating about -0.06 per unit of risk. If you would invest 15.00 in Kingsmen Creatives on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Kingsmen Creatives or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.78% |
| Values | Daily Returns |
Kingsmen Creatives vs. Mid Atlantic Home Health
Performance |
| Timeline |
| Kingsmen Creatives |
| Mid Atlantic Home |
Kingsmen Creatives and Mid Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen Creatives and Mid Atlantic
The main advantage of trading using opposite Kingsmen Creatives and Mid Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen Creatives position performs unexpectedly, Mid Atlantic 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 Mid Atlantic will offset losses from the drop in Mid Atlantic's long position.| Kingsmen Creatives vs. Eldorado Gold Corp | Kingsmen Creatives vs. Amkor Technology | Kingsmen Creatives vs. Supercom | Kingsmen Creatives vs. Plexus Corp |
| Mid Atlantic vs. Jack Nathan Medical | Mid Atlantic vs. Medical Facilities | Mid Atlantic vs. Ramsay Health Care | Mid Atlantic vs. Nova Leap Health |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |