Correlation Between KTM Industries and BKS Bank
Can any of the company-specific risk be diversified away by investing in both KTM Industries and BKS Bank 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 KTM Industries and BKS Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTM Industries AG and BKS Bank AG, you can compare the effects of market volatilities on KTM Industries and BKS Bank 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 KTM Industries with a short position of BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTM Industries and BKS Bank.
Diversification Opportunities for KTM Industries and BKS Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTM and BKS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTM Industries AG and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank AG and KTM Industries 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 KTM Industries AG are associated (or correlated) with BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of KTM Industries i.e., KTM Industries and BKS Bank go up and down completely randomly.
Pair Corralation between KTM Industries and BKS Bank
If you would invest 0.00 in KTM Industries AG on August 27, 2024 and sell it today you would earn a total of 0.00 from holding KTM Industries AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
KTM Industries AG vs. BKS Bank AG
Performance |
| Timeline |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BKS Bank AG |
KTM Industries and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTM Industries and BKS Bank
The main advantage of trading using opposite KTM Industries and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTM Industries position performs unexpectedly, BKS Bank 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 BKS Bank will offset losses from the drop in BKS Bank's long position.| KTM Industries vs. UNIQA Insurance Group | KTM Industries vs. SBM Offshore NV | KTM Industries vs. Addiko Bank AG | KTM Industries vs. AMAG Austria Metall |
| BKS Bank vs. AMAG Austria Metall | BKS Bank vs. UNIQA Insurance Group | BKS Bank vs. Raiffeisen Bank International | BKS Bank vs. SBM Offshore NV |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |