Correlation Between Kontoor Brands and VERIZON
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By analyzing existing cross correlation between Kontoor Brands and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on Kontoor Brands and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and VERIZON.
Diversification Opportunities for Kontoor Brands and VERIZON
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kontoor and VERIZON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS INC 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and VERIZON go up and down completely randomly.
Pair Corralation between Kontoor Brands and VERIZON
Considering the 90-day investment horizon Kontoor Brands is expected to generate 1.34 times more return on investment than VERIZON. However, Kontoor Brands is 1.34 times more volatile than VERIZON MUNICATIONS INC. It trades about 0.3 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about 0.07 per unit of risk. If you would invest 8,425 in Kontoor Brands on September 5, 2024 and sell it today you would earn a total of 980.00 from holding Kontoor Brands or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Kontoor Brands vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| Kontoor Brands |
| VERIZON MUNICATIONS INC |
Kontoor Brands and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and VERIZON
The main advantage of trading using opposite Kontoor Brands and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| Kontoor Brands vs. VF Corporation | Kontoor Brands vs. Levi Strauss Co | Kontoor Brands vs. Under Armour A | Kontoor Brands vs. Columbia Sportswear |
| VERIZON vs. AEP TEX INC | VERIZON vs. US BANK NATIONAL | VERIZON vs. MetLife | VERIZON vs. Brera Holdings PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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