Correlation Between Kontoor Brands and APACHE
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By analyzing existing cross correlation between Kontoor Brands and APACHE P 525, you can compare the effects of market volatilities on Kontoor Brands and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and APACHE.
Diversification Opportunities for Kontoor Brands and APACHE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontoor and APACHE is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and APACHE P 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 525 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 525 has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and APACHE go up and down completely randomly.
Pair Corralation between Kontoor Brands and APACHE
Considering the 90-day investment horizon Kontoor Brands is expected to generate 1.74 times more return on investment than APACHE. However, Kontoor Brands is 1.74 times more volatile than APACHE P 525. It trades about 0.08 of its potential returns per unit of risk. APACHE P 525 is currently generating about 0.01 per unit of risk. If you would invest 4,059 in Kontoor Brands on August 25, 2024 and sell it today you would earn a total of 5,079 from holding Kontoor Brands or generate 125.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.73% |
| Values | Daily Returns |
Kontoor Brands vs. APACHE P 525
Performance |
| Timeline |
| Kontoor Brands |
| APACHE P 525 |
Kontoor Brands and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and APACHE
The main advantage of trading using opposite Kontoor Brands and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE'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 |
| APACHE vs. Nabors Industries | APACHE vs. Turning Point Brands | APACHE vs. Molson Coors Brewing | APACHE vs. AKITA Drilling |
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 CEOs Directory module to screen CEOs from public companies around the world.
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