Correlation Between Kaufman Et and ATEME SA
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and ATEME SA 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 Kaufman Et and ATEME SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and ATEME SA, you can compare the effects of market volatilities on Kaufman Et and ATEME SA 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 Kaufman Et with a short position of ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and ATEME SA.
Diversification Opportunities for Kaufman Et and ATEME SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaufman and ATEME is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME SA and Kaufman Et 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 Kaufman Et Broad are associated (or correlated) with ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of Kaufman Et i.e., Kaufman Et and ATEME SA go up and down completely randomly.
Pair Corralation between Kaufman Et and ATEME SA
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.58 times more return on investment than ATEME SA. However, Kaufman Et Broad is 1.72 times less risky than ATEME SA. It trades about 0.05 of its potential returns per unit of risk. ATEME SA is currently generating about 0.0 per unit of risk. If you would invest 2,696 in Kaufman Et Broad on November 3, 2024 and sell it today you would earn a total of 624.00 from holding Kaufman Et Broad or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Et Broad vs. ATEME SA
Performance |
| Timeline |
| Kaufman Et Broad |
| ATEME SA |
Kaufman Et and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and ATEME SA
The main advantage of trading using opposite Kaufman Et and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, ATEME SA 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 ATEME SA will offset losses from the drop in ATEME SA's long position.The idea behind Kaufman Et Broad and ATEME SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ATEME SA vs. X Fab Silicon | ATEME SA vs. Eutelsat Communications SA | ATEME SA vs. Odyssee Technologies SA | ATEME SA vs. Jacquet Metal Service |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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