Correlation Between Kontoor Brands and Silo Pharma
Can any of the company-specific risk be diversified away by investing in both Kontoor Brands and Silo Pharma 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 Kontoor Brands and Silo Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontoor Brands and Silo Pharma, you can compare the effects of market volatilities on Kontoor Brands and Silo Pharma 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 Kontoor Brands with a short position of Silo Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and Silo Pharma.
Diversification Opportunities for Kontoor Brands and Silo Pharma
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontoor and Silo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and Silo Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silo Pharma and Kontoor Brands 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 Kontoor Brands are associated (or correlated) with Silo Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silo Pharma has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and Silo Pharma go up and down completely randomly.
Pair Corralation between Kontoor Brands and Silo Pharma
Considering the 90-day investment horizon Kontoor Brands is expected to generate 0.46 times more return on investment than Silo Pharma. However, Kontoor Brands is 2.17 times less risky than Silo Pharma. It trades about 0.17 of its potential returns per unit of risk. Silo Pharma is currently generating about -0.01 per unit of risk. If you would invest 7,287 in Kontoor Brands on September 3, 2024 and sell it today you would earn a total of 1,891 from holding Kontoor Brands or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontoor Brands vs. Silo Pharma
Performance |
| Timeline |
| Kontoor Brands |
| Silo Pharma |
Kontoor Brands and Silo Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and Silo Pharma
The main advantage of trading using opposite Kontoor Brands and Silo Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, Silo Pharma 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 Silo Pharma will offset losses from the drop in Silo Pharma's long position.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
| Silo Pharma vs. Protagenic Therapeutics | Silo Pharma vs. Rezolute | Silo Pharma vs. Lumos Pharma | Silo Pharma vs. Anebulo Pharmaceuticals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |