Correlation Between Knowles Cor and Rogers
Can any of the company-specific risk be diversified away by investing in both Knowles Cor and Rogers 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 Knowles Cor and Rogers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and Rogers, you can compare the effects of market volatilities on Knowles Cor and Rogers 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 Knowles Cor with a short position of Rogers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and Rogers.
Diversification Opportunities for Knowles Cor and Rogers
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Knowles and Rogers is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and Rogers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers and Knowles Cor 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 Knowles Cor are associated (or correlated) with Rogers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers has no effect on the direction of Knowles Cor i.e., Knowles Cor and Rogers go up and down completely randomly.
Pair Corralation between Knowles Cor and Rogers
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 0.94 times more return on investment than Rogers. However, Knowles Cor is 1.06 times less risky than Rogers. It trades about 0.06 of its potential returns per unit of risk. Rogers is currently generating about -0.03 per unit of risk. If you would invest 1,755 in Knowles Cor on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Knowles Cor or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. Rogers
Performance |
| Timeline |
| Knowles Cor |
| Rogers |
Knowles Cor and Rogers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and Rogers
The main advantage of trading using opposite Knowles Cor and Rogers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor position performs unexpectedly, Rogers 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 Rogers will offset losses from the drop in Rogers' long position.| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
| Rogers vs. Marfrig Global Foods | Rogers vs. Philip Morris International | Rogers vs. Ambev SA ADR | Rogers vs. Scandinavian Tobacco Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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