Correlation Between Kontoor Brands and AMERICAN
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By analyzing existing cross correlation between Kontoor Brands and AMERICAN EXPRESS PANY, you can compare the effects of market volatilities on Kontoor Brands and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and AMERICAN.
Diversification Opportunities for Kontoor Brands and AMERICAN
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kontoor and AMERICAN is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and AMERICAN EXPRESS PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS PANY 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS PANY has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and AMERICAN go up and down completely randomly.
Pair Corralation between Kontoor Brands and AMERICAN
Considering the 90-day investment horizon Kontoor Brands is expected to generate 4.56 times more return on investment than AMERICAN. However, Kontoor Brands is 4.56 times more volatile than AMERICAN EXPRESS PANY. It trades about 0.01 of its potential returns per unit of risk. AMERICAN EXPRESS PANY is currently generating about -0.14 per unit of risk. If you would invest 8,997 in Kontoor Brands on September 13, 2024 and sell it today you would lose (9.00) from holding Kontoor Brands or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kontoor Brands vs. AMERICAN EXPRESS PANY
Performance |
| Timeline |
| Kontoor Brands |
| AMERICAN EXPRESS PANY |
Kontoor Brands and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and AMERICAN
The main advantage of trading using opposite Kontoor Brands and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. Molson Coors Brewing | AMERICAN vs. Celsius Holdings | AMERICAN vs. Tencent Music Entertainment | AMERICAN vs. Datadog |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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