Correlation Between KS AG and Yara International
Can any of the company-specific risk be diversified away by investing in both KS AG and Yara International 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 Yara International 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 Yara International ASA, you can compare the effects of market volatilities on KS AG and Yara International 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 Yara International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KS AG and Yara International.
Diversification Opportunities for KS AG and Yara International
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KPLUY and Yara is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding KS AG DRC and Yara International ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yara International ASA 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 Yara International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yara International ASA has no effect on the direction of KS AG i.e., KS AG and Yara International go up and down completely randomly.
Pair Corralation between KS AG and Yara International
Assuming the 90 days horizon KS AG DRC is expected to generate 1.94 times more return on investment than Yara International. However, KS AG is 1.94 times more volatile than Yara International ASA. It trades about -0.06 of its potential returns per unit of risk. Yara International ASA is currently generating about -0.13 per unit of risk. If you would invest 634.00 in KS AG DRC on August 30, 2024 and sell it today you would lose (48.00) from holding KS AG DRC or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KS AG DRC vs. Yara International ASA
Performance |
| Timeline |
| KS AG DRC |
| Yara International ASA |
KS AG and Yara International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KS AG and Yara International
The main advantage of trading using opposite KS AG and Yara International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KS AG position performs unexpectedly, Yara International 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 Yara International will offset losses from the drop in Yara International'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 |
| Yara International vs. KS AG DRC | Yara International vs. ICL Israel Chemicals | Yara International vs. CF Industries Holdings | Yara International vs. The Mosaic |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |