Correlation Between King Resources and FREYR Battery
Can any of the company-specific risk be diversified away by investing in both King Resources and FREYR Battery 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 King Resources and FREYR Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between King Resources and FREYR Battery SA, you can compare the effects of market volatilities on King Resources and FREYR Battery 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 King Resources with a short position of FREYR Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Resources and FREYR Battery.
Diversification Opportunities for King Resources and FREYR Battery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between King and FREYR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding King Resources and FREYR Battery SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREYR Battery SA and King Resources 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 King Resources are associated (or correlated) with FREYR Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREYR Battery SA has no effect on the direction of King Resources i.e., King Resources and FREYR Battery go up and down completely randomly.
Pair Corralation between King Resources and FREYR Battery
Given the investment horizon of 90 days King Resources is expected to generate 1.9 times less return on investment than FREYR Battery. In addition to that, King Resources is 2.15 times more volatile than FREYR Battery SA. It trades about 0.06 of its total potential returns per unit of risk. FREYR Battery SA is currently generating about 0.26 per unit of volatility. If you would invest 102.00 in FREYR Battery SA on August 30, 2024 and sell it today you would earn a total of 112.00 from holding FREYR Battery SA or generate 109.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
King Resources vs. FREYR Battery SA
Performance |
| Timeline |
| King Resources |
| FREYR Battery SA |
King Resources and FREYR Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Resources and FREYR Battery
The main advantage of trading using opposite King Resources and FREYR Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Resources position performs unexpectedly, FREYR Battery 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 FREYR Battery will offset losses from the drop in FREYR Battery's long position.| King Resources vs. Generation Alpha | King Resources vs. Dais Analytic Corp | King Resources vs. Polar Power | King Resources vs. Ozop Surgical Corp |
| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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