Correlation Between Know Labs and Fortive Corp
Can any of the company-specific risk be diversified away by investing in both Know Labs and Fortive Corp 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 Know Labs and Fortive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Know Labs and Fortive Corp, you can compare the effects of market volatilities on Know Labs and Fortive Corp 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 Know Labs with a short position of Fortive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know Labs and Fortive Corp.
Diversification Opportunities for Know Labs and Fortive Corp
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Know and Fortive is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Know Labs and Fortive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortive Corp and Know Labs 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 Know Labs are associated (or correlated) with Fortive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortive Corp has no effect on the direction of Know Labs i.e., Know Labs and Fortive Corp go up and down completely randomly.
Pair Corralation between Know Labs and Fortive Corp
Considering the 90-day investment horizon Know Labs is expected to generate 10.12 times more return on investment than Fortive Corp. However, Know Labs is 10.12 times more volatile than Fortive Corp. It trades about 0.04 of its potential returns per unit of risk. Fortive Corp is currently generating about 0.35 per unit of risk. If you would invest 15.00 in Know Labs on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Know Labs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Know Labs vs. Fortive Corp
Performance |
| Timeline |
| Know Labs |
| Fortive Corp |
Know Labs and Fortive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Know Labs and Fortive Corp
The main advantage of trading using opposite Know Labs and Fortive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know Labs position performs unexpectedly, Fortive Corp 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 Fortive Corp will offset losses from the drop in Fortive Corp's long position.| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
| Fortive Corp vs. Vishay Precision Group | Fortive Corp vs. Sensata Technologies Holding | Fortive Corp vs. Badger Meter | Fortive Corp vs. Trimble |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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