Correlation Between Konica Minolta and Avery Dennison
Can any of the company-specific risk be diversified away by investing in both Konica Minolta and Avery Dennison 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 Konica Minolta and Avery Dennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konica Minolta and Avery Dennison Corp, you can compare the effects of market volatilities on Konica Minolta and Avery Dennison 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 Konica Minolta with a short position of Avery Dennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konica Minolta and Avery Dennison.
Diversification Opportunities for Konica Minolta and Avery Dennison
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Konica and Avery is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Konica Minolta and Avery Dennison Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avery Dennison Corp and Konica Minolta 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 Konica Minolta are associated (or correlated) with Avery Dennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avery Dennison Corp has no effect on the direction of Konica Minolta i.e., Konica Minolta and Avery Dennison go up and down completely randomly.
Pair Corralation between Konica Minolta and Avery Dennison
Assuming the 90 days trading horizon Konica Minolta is expected to generate 1.78 times more return on investment than Avery Dennison. However, Konica Minolta is 1.78 times more volatile than Avery Dennison Corp. It trades about -0.01 of its potential returns per unit of risk. Avery Dennison Corp is currently generating about -0.06 per unit of risk. If you would invest 420.00 in Konica Minolta on September 13, 2024 and sell it today you would lose (3.00) from holding Konica Minolta or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konica Minolta vs. Avery Dennison Corp
Performance |
| Timeline |
| Konica Minolta |
| Avery Dennison Corp |
Konica Minolta and Avery Dennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konica Minolta and Avery Dennison
The main advantage of trading using opposite Konica Minolta and Avery Dennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konica Minolta position performs unexpectedly, Avery Dennison 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 Avery Dennison will offset losses from the drop in Avery Dennison's long position.| Konica Minolta vs. OURGAME INTHOLDL 00005 | Konica Minolta vs. Sims Metal Management | Konica Minolta vs. Games Workshop Group | Konica Minolta vs. HOCHSCHILD MINING |
| Avery Dennison vs. FUJIFILM Holdings | Avery Dennison vs. Konica Minolta | Avery Dennison vs. KOKUYO LTD | Avery Dennison vs. Takkt AG |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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