Correlation Between Kontoor Brands and ORACLE
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By analyzing existing cross correlation between Kontoor Brands and ORACLE P 295, you can compare the effects of market volatilities on Kontoor Brands and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and ORACLE.
Diversification Opportunities for Kontoor Brands and ORACLE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontoor and ORACLE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and ORACLE P 295 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 295 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 295 has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and ORACLE go up and down completely randomly.
Pair Corralation between Kontoor Brands and ORACLE
Considering the 90-day investment horizon Kontoor Brands is expected to generate 0.6 times more return on investment than ORACLE. However, Kontoor Brands is 1.67 times less risky than ORACLE. It trades about 0.01 of its potential returns per unit of risk. ORACLE P 295 is currently generating about -0.21 per unit of risk. If you would invest 8,997 in Kontoor Brands on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Kontoor Brands or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Kontoor Brands vs. ORACLE P 295
Performance |
| Timeline |
| Kontoor Brands |
| ORACLE P 295 |
Kontoor Brands and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and ORACLE
The main advantage of trading using opposite Kontoor Brands and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| Kontoor Brands vs. J Long Group Limited | Kontoor Brands vs. Under Armour C | Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Figs Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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