Correlation Between Kontoor Brands and Box Ships
Can any of the company-specific risk be diversified away by investing in both Kontoor Brands and Box Ships 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 Box Ships into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontoor Brands and Box Ships, you can compare the effects of market volatilities on Kontoor Brands and Box Ships 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 Box Ships. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and Box Ships.
Diversification Opportunities for Kontoor Brands and Box Ships
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kontoor and Box is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and Box Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Ships 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 Box Ships. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Box Ships has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and Box Ships go up and down completely randomly.
Pair Corralation between Kontoor Brands and Box Ships
If you would invest 7,656 in Kontoor Brands on August 31, 2024 and sell it today you would earn a total of 1,414 from holding Kontoor Brands or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Kontoor Brands vs. Box Ships
Performance |
| Timeline |
| Kontoor Brands |
| Box Ships |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kontoor Brands and Box Ships Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and Box Ships
The main advantage of trading using opposite Kontoor Brands and Box Ships positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, Box Ships 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 Box Ships will offset losses from the drop in Box Ships' long position.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
| Box Ships vs. Franklin Credit Management | Box Ships vs. Steven Madden | Box Ships vs. Kontoor Brands | Box Ships vs. Skechers USA |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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