Correlation Between KSB SE and Cogent Communications
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By analyzing existing cross correlation between KSB SE Co and Cogent Communications Holdings, you can compare the effects of market volatilities on KSB SE and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSB SE and Cogent Communications.
Diversification Opportunities for KSB SE and Cogent Communications
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KSB and Cogent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding KSB SE Co and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of KSB SE i.e., KSB SE and Cogent Communications go up and down completely randomly.
Pair Corralation between KSB SE and Cogent Communications
Assuming the 90 days trading horizon KSB SE Co is expected to generate 0.42 times more return on investment than Cogent Communications. However, KSB SE Co is 2.36 times less risky than Cogent Communications. It trades about 0.13 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.03 per unit of risk. If you would invest 60,800 in KSB SE Co on September 15, 2024 and sell it today you would earn a total of 1,200 from holding KSB SE Co or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KSB SE Co vs. Cogent Communications Holdings
Performance |
| Timeline |
| KSB SE |
| Cogent Communications |
KSB SE and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSB SE and Cogent Communications
The main advantage of trading using opposite KSB SE and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSB SE position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| KSB SE vs. Cogent Communications Holdings | KSB SE vs. Shenandoah Telecommunications | KSB SE vs. SBA Communications Corp | KSB SE vs. Norwegian Air Shuttle |
| Cogent Communications vs. Superior Plus Corp | Cogent Communications vs. SIVERS SEMICONDUCTORS AB | Cogent Communications vs. Norsk Hydro ASA | Cogent Communications vs. Reliance Steel Aluminum |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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