Correlation Between KYN Capital and Green Globe
Can any of the company-specific risk be diversified away by investing in both KYN Capital and Green Globe 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 Green Globe 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 Green Globe International, you can compare the effects of market volatilities on KYN Capital and Green Globe 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 Green Globe. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYN Capital and Green Globe.
Diversification Opportunities for KYN Capital and Green Globe
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KYN and Green is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KYN Capital Group and Green Globe International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Globe International 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 Green Globe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Globe International has no effect on the direction of KYN Capital i.e., KYN Capital and Green Globe go up and down completely randomly.
Pair Corralation between KYN Capital and Green Globe
Given the investment horizon of 90 days KYN Capital Group is expected to generate 1.05 times more return on investment than Green Globe. However, KYN Capital is 1.05 times more volatile than Green Globe International. It trades about 0.07 of its potential returns per unit of risk. Green Globe International is currently generating about 0.04 per unit of risk. If you would invest 0.05 in KYN Capital Group on October 24, 2024 and sell it today you would earn a total of 0.01 from holding KYN Capital Group or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
KYN Capital Group vs. Green Globe International
Performance |
| Timeline |
| KYN Capital Group |
| Green Globe International |
KYN Capital and Green Globe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYN Capital and Green Globe
The main advantage of trading using opposite KYN Capital and Green Globe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYN Capital position performs unexpectedly, Green Globe 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 Green Globe will offset losses from the drop in Green Globe's long position.| KYN Capital vs. Capital Financial Gl | KYN Capital vs. Baron Capital | KYN Capital vs. CYIOS | KYN Capital vs. Cosmos Group Holdings |
| Green Globe vs. Kaival Brands Innovations | Green Globe vs. Greenlane Holdings | Green Globe vs. RLX Technology | Green Globe vs. 22nd Century Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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