Correlation Between KSB SE and GOODYEAR T
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By analyzing existing cross correlation between KSB SE Co and GOODYEAR T RUBBER, you can compare the effects of market volatilities on KSB SE and GOODYEAR T 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 KSB SE with a short position of GOODYEAR T. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSB SE and GOODYEAR T.
Diversification Opportunities for KSB SE and GOODYEAR T
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between KSB and GOODYEAR is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding KSB SE Co and GOODYEAR T RUBBER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOODYEAR T RUBBER and KSB SE 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 KSB SE Co are associated (or correlated) with GOODYEAR T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOODYEAR T RUBBER has no effect on the direction of KSB SE i.e., KSB SE and GOODYEAR T go up and down completely randomly.
Pair Corralation between KSB SE and GOODYEAR T
Assuming the 90 days trading horizon KSB SE is expected to generate 2.64 times less return on investment than GOODYEAR T. But when comparing it to its historical volatility, KSB SE Co is 2.27 times less risky than GOODYEAR T. It trades about 0.05 of its potential returns per unit of risk. GOODYEAR T RUBBER is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 775.00 in GOODYEAR T RUBBER on November 2, 2024 and sell it today you would earn a total of 114.00 from holding GOODYEAR T RUBBER or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
KSB SE Co vs. GOODYEAR T RUBBER
Performance |
| Timeline |
| KSB SE |
| GOODYEAR T RUBBER |
KSB SE and GOODYEAR T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSB SE and GOODYEAR T
The main advantage of trading using opposite KSB SE and GOODYEAR T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSB SE position performs unexpectedly, GOODYEAR T 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 GOODYEAR T will offset losses from the drop in GOODYEAR T's long position.| KSB SE vs. UPDATE SOFTWARE | KSB SE vs. PSI Software AG | KSB SE vs. Diamyd Medical AB | KSB SE vs. Magic Software Enterprises |
| GOODYEAR T vs. TreeHouse Foods | GOODYEAR T vs. OFFICE DEPOT | GOODYEAR T vs. Axfood AB | GOODYEAR T vs. Performance Food Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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