Correlation Between KS AG and Boswell J
Can any of the company-specific risk be diversified away by investing in both KS AG and Boswell J 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 KS AG and Boswell J into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KS AG DRC and Boswell J G, you can compare the effects of market volatilities on KS AG and Boswell J 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 KS AG with a short position of Boswell J. Check out your portfolio center. Please also check ongoing floating volatility patterns of KS AG and Boswell J.
Diversification Opportunities for KS AG and Boswell J
Good diversification
The 3 months correlation between KPLUY and Boswell is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding KS AG DRC and Boswell J G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boswell J G and KS AG 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 KS AG DRC are associated (or correlated) with Boswell J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boswell J G has no effect on the direction of KS AG i.e., KS AG and Boswell J go up and down completely randomly.
Pair Corralation between KS AG and Boswell J
Assuming the 90 days horizon KS AG DRC is expected to generate 2.21 times more return on investment than Boswell J. However, KS AG is 2.21 times more volatile than Boswell J G. It trades about 0.06 of its potential returns per unit of risk. Boswell J G is currently generating about -0.15 per unit of risk. If you would invest 663.00 in KS AG DRC on November 27, 2024 and sell it today you would earn a total of 14.00 from holding KS AG DRC or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KS AG DRC vs. Boswell J G
Performance |
| Timeline |
| KS AG DRC |
| Boswell J G |
KS AG and Boswell J Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KS AG and Boswell J
The main advantage of trading using opposite KS AG and Boswell J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KS AG position performs unexpectedly, Boswell J 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 Boswell J will offset losses from the drop in Boswell J's long position.| KS AG vs. Yara International ASA | KS AG vs. Boswell J G | KS AG vs. ICL Israel Chemicals | KS AG vs. CF Industries Holdings |
| Boswell J vs. Limoneira Co | Boswell J vs. Keweenaw Land Association | Boswell J vs. Pardee Resources Co | Boswell J vs. Farmers And Merchants |
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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