Correlation Between Kontrol Technologies and First National
Can any of the company-specific risk be diversified away by investing in both Kontrol Technologies and First National 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 Kontrol Technologies and First National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontrol Technologies Corp and First National Energy, you can compare the effects of market volatilities on Kontrol Technologies and First National 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 Kontrol Technologies with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrol Technologies and First National.
Diversification Opportunities for Kontrol Technologies and First National
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kontrol and First is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kontrol Technologies Corp and First National Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Energy and Kontrol Technologies 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 Kontrol Technologies Corp are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Energy has no effect on the direction of Kontrol Technologies i.e., Kontrol Technologies and First National go up and down completely randomly.
Pair Corralation between Kontrol Technologies and First National
Assuming the 90 days horizon Kontrol Technologies Corp is expected to under-perform the First National. But the otc stock apears to be less risky and, when comparing its historical volatility, Kontrol Technologies Corp is 15.6 times less risky than First National. The otc stock trades about 0.0 of its potential returns per unit of risk. The First National Energy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4.35 in First National Energy on September 2, 2024 and sell it today you would earn a total of 4.71 from holding First National Energy or generate 108.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kontrol Technologies Corp vs. First National Energy
Performance |
| Timeline |
| Kontrol Technologies Corp |
| First National Energy |
Kontrol Technologies and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontrol Technologies and First National
The main advantage of trading using opposite Kontrol Technologies and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontrol Technologies position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
| First National vs. Nextera Energy | First National vs. Consumers Energy | First National vs. Duke Energy | First National vs. Centrais Electricas Brasileiras |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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