Correlation Between Kneomedia and Flagship Investments
Can any of the company-specific risk be diversified away by investing in both Kneomedia and Flagship Investments 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 Kneomedia and Flagship Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kneomedia and Flagship Investments, you can compare the effects of market volatilities on Kneomedia and Flagship Investments 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 Kneomedia with a short position of Flagship Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kneomedia and Flagship Investments.
Diversification Opportunities for Kneomedia and Flagship Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kneomedia and Flagship is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kneomedia and Flagship Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagship Investments and Kneomedia 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 Kneomedia are associated (or correlated) with Flagship Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagship Investments has no effect on the direction of Kneomedia i.e., Kneomedia and Flagship Investments go up and down completely randomly.
Pair Corralation between Kneomedia and Flagship Investments
Assuming the 90 days trading horizon Kneomedia is expected to generate 6.78 times more return on investment than Flagship Investments. However, Kneomedia is 6.78 times more volatile than Flagship Investments. It trades about 0.01 of its potential returns per unit of risk. Flagship Investments is currently generating about 0.05 per unit of risk. If you would invest 1.30 in Kneomedia on October 14, 2024 and sell it today you would lose (1.10) from holding Kneomedia or give up 84.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kneomedia vs. Flagship Investments
Performance |
| Timeline |
| Kneomedia |
| Flagship Investments |
Kneomedia and Flagship Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kneomedia and Flagship Investments
The main advantage of trading using opposite Kneomedia and Flagship Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kneomedia position performs unexpectedly, Flagship Investments 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 Flagship Investments will offset losses from the drop in Flagship Investments' long position.| Kneomedia vs. Autosports Group | Kneomedia vs. Hutchison Telecommunications | Kneomedia vs. Macquarie Technology Group | Kneomedia vs. Australian Unity Office |
| Flagship Investments vs. WiseTech Global Limited | Flagship Investments vs. Kneomedia | Flagship Investments vs. Australian Agricultural | Flagship Investments vs. Southern Cross Media |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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