Correlation Between KYN Capital and Finance Of
Can any of the company-specific risk be diversified away by investing in both KYN Capital and Finance Of 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 KYN Capital and Finance Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KYN Capital Group and Finance of America, you can compare the effects of market volatilities on KYN Capital and Finance Of 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 KYN Capital with a short position of Finance Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYN Capital and Finance Of.
Diversification Opportunities for KYN Capital and Finance Of
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KYN and Finance is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KYN Capital Group and Finance of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finance of America and KYN Capital 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 KYN Capital Group are associated (or correlated) with Finance Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finance of America has no effect on the direction of KYN Capital i.e., KYN Capital and Finance Of go up and down completely randomly.
Pair Corralation between KYN Capital and Finance Of
Given the investment horizon of 90 days KYN Capital Group is expected to generate 2.61 times more return on investment than Finance Of. However, KYN Capital is 2.61 times more volatile than Finance of America. It trades about 0.08 of its potential returns per unit of risk. Finance of America is currently generating about 0.04 per unit of risk. If you would invest 0.05 in KYN Capital Group on August 30, 2024 and sell it today you would earn a total of 0.02 from holding KYN Capital Group or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KYN Capital Group vs. Finance of America
Performance |
| Timeline |
| KYN Capital Group |
| Finance of America |
KYN Capital and Finance Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYN Capital and Finance Of
The main advantage of trading using opposite KYN Capital and Finance Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYN Capital position performs unexpectedly, Finance Of 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 Finance Of will offset losses from the drop in Finance Of's long position.| KYN Capital vs. Visa Class A | KYN Capital vs. Mastercard | KYN Capital vs. American Express | KYN Capital vs. PayPal Holdings |
| Finance Of vs. Regional Management Corp | Finance Of vs. Orix Corp Ads | Finance Of vs. FirstCash | Finance Of vs. EZCORP 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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