Correlation Between Koppers Holdings and Know Labs
Can any of the company-specific risk be diversified away by investing in both Koppers Holdings and Know Labs 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 Koppers Holdings and Know Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koppers Holdings and Know Labs, you can compare the effects of market volatilities on Koppers Holdings and Know Labs 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 Koppers Holdings with a short position of Know Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koppers Holdings and Know Labs.
Diversification Opportunities for Koppers Holdings and Know Labs
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koppers and Know is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Koppers Holdings and Know Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Know Labs and Koppers Holdings 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 Koppers Holdings are associated (or correlated) with Know Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Know Labs has no effect on the direction of Koppers Holdings i.e., Koppers Holdings and Know Labs go up and down completely randomly.
Pair Corralation between Koppers Holdings and Know Labs
Considering the 90-day investment horizon Koppers Holdings is expected to generate 0.31 times more return on investment than Know Labs. However, Koppers Holdings is 3.24 times less risky than Know Labs. It trades about 0.03 of its potential returns per unit of risk. Know Labs is currently generating about -0.02 per unit of risk. If you would invest 3,332 in Koppers Holdings on August 28, 2024 and sell it today you would earn a total of 570.00 from holding Koppers Holdings or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koppers Holdings vs. Know Labs
Performance |
| Timeline |
| Koppers Holdings |
| Know Labs |
Koppers Holdings and Know Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koppers Holdings and Know Labs
The main advantage of trading using opposite Koppers Holdings and Know Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koppers Holdings position performs unexpectedly, Know Labs 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 Know Labs will offset losses from the drop in Know Labs' long position.| Koppers Holdings vs. Quaker Chemical | Koppers Holdings vs. Minerals Technologies | Koppers Holdings vs. Innospec | Koppers Holdings vs. H B Fuller |
| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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