Correlation Between Knorr Bremse and Foresight Autonomous
Can any of the company-specific risk be diversified away by investing in both Knorr Bremse and Foresight Autonomous 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 Knorr Bremse and Foresight Autonomous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knorr Bremse Aktiengesellschaft and Foresight Autonomous Holdings, you can compare the effects of market volatilities on Knorr Bremse and Foresight Autonomous 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 Knorr Bremse with a short position of Foresight Autonomous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knorr Bremse and Foresight Autonomous.
Diversification Opportunities for Knorr Bremse and Foresight Autonomous
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Knorr and Foresight is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Knorr Bremse Aktiengesellschaf and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous and Knorr Bremse 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 Knorr Bremse Aktiengesellschaft are associated (or correlated) with Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of Knorr Bremse i.e., Knorr Bremse and Foresight Autonomous go up and down completely randomly.
Pair Corralation between Knorr Bremse and Foresight Autonomous
Assuming the 90 days horizon Knorr Bremse Aktiengesellschaft is expected to under-perform the Foresight Autonomous. But the pink sheet apears to be less risky and, when comparing its historical volatility, Knorr Bremse Aktiengesellschaft is 2.21 times less risky than Foresight Autonomous. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Foresight Autonomous Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 69.00 in Foresight Autonomous Holdings on September 12, 2024 and sell it today you would lose (4.50) from holding Foresight Autonomous Holdings or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knorr Bremse Aktiengesellschaf vs. Foresight Autonomous Holdings
Performance |
| Timeline |
| Knorr Bremse Aktieng |
| Foresight Autonomous |
Knorr Bremse and Foresight Autonomous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knorr Bremse and Foresight Autonomous
The main advantage of trading using opposite Knorr Bremse and Foresight Autonomous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knorr Bremse position performs unexpectedly, Foresight Autonomous 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 Foresight Autonomous will offset losses from the drop in Foresight Autonomous' long position.| Knorr Bremse vs. 4 Less Group | Knorr Bremse vs. Foresight Autonomous Holdings | Knorr Bremse vs. Goodyear Tire Rubber | Knorr Bremse vs. Luminar Technologies |
| Foresight Autonomous vs. Ford Motor | Foresight Autonomous vs. General Motors | Foresight Autonomous vs. Goodyear Tire Rubber | Foresight Autonomous vs. Li Auto |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |