Correlation Between Kri Kri and BriQ Properties
Can any of the company-specific risk be diversified away by investing in both Kri Kri and BriQ Properties 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 Kri Kri and BriQ Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kri Kri Milk Industry and BriQ Properties Real, you can compare the effects of market volatilities on Kri Kri and BriQ Properties 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 Kri Kri with a short position of BriQ Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kri Kri and BriQ Properties.
Diversification Opportunities for Kri Kri and BriQ Properties
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kri and BriQ is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kri Kri Milk Industry and BriQ Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriQ Properties Real and Kri Kri 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 Kri Kri Milk Industry are associated (or correlated) with BriQ Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriQ Properties Real has no effect on the direction of Kri Kri i.e., Kri Kri and BriQ Properties go up and down completely randomly.
Pair Corralation between Kri Kri and BriQ Properties
Assuming the 90 days trading horizon Kri Kri Milk Industry is expected to generate 1.85 times more return on investment than BriQ Properties. However, Kri Kri is 1.85 times more volatile than BriQ Properties Real. It trades about 0.13 of its potential returns per unit of risk. BriQ Properties Real is currently generating about 0.04 per unit of risk. If you would invest 612.00 in Kri Kri Milk Industry on August 27, 2024 and sell it today you would earn a total of 818.00 from holding Kri Kri Milk Industry or generate 133.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kri Kri Milk Industry vs. BriQ Properties Real
Performance |
| Timeline |
| Kri Kri Milk |
| BriQ Properties Real |
Kri Kri and BriQ Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kri Kri and BriQ Properties
The main advantage of trading using opposite Kri Kri and BriQ Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kri Kri position performs unexpectedly, BriQ Properties 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 BriQ Properties will offset losses from the drop in BriQ Properties' long position.| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines SA |
| BriQ Properties vs. Mytilineos SA | BriQ Properties vs. Motor Oil Corinth | BriQ Properties vs. Hellenic Petroleum SA | BriQ Properties vs. National Bank of |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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