Correlation Between KYN Capital and New Amer
Can any of the company-specific risk be diversified away by investing in both KYN Capital and New Amer 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 New Amer 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 New Amer Energy, you can compare the effects of market volatilities on KYN Capital and New Amer 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 New Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYN Capital and New Amer.
Diversification Opportunities for KYN Capital and New Amer
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KYN and New is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding KYN Capital Group and New Amer Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Amer Energy 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 New Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Amer Energy has no effect on the direction of KYN Capital i.e., KYN Capital and New Amer go up and down completely randomly.
Pair Corralation between KYN Capital and New Amer
If you would invest 0.01 in New Amer Energy on August 27, 2024 and sell it today you would earn a total of 0.00 from holding New Amer Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
KYN Capital Group vs. New Amer Energy
Performance |
| Timeline |
| KYN Capital Group |
| New Amer Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KYN Capital and New Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYN Capital and New Amer
The main advantage of trading using opposite KYN Capital and New Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYN Capital position performs unexpectedly, New Amer 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 New Amer will offset losses from the drop in New Amer's long position.| KYN Capital vs. Capital Financial Gl | KYN Capital vs. Baron Capital | KYN Capital vs. CYIOS | KYN Capital vs. Cosmos Group Holdings |
| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |