Correlation Between KYN Capital and Nicholas Financial
Can any of the company-specific risk be diversified away by investing in both KYN Capital and Nicholas Financial 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 Nicholas Financial 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 Nicholas Financial, you can compare the effects of market volatilities on KYN Capital and Nicholas Financial 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 Nicholas Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYN Capital and Nicholas Financial.
Diversification Opportunities for KYN Capital and Nicholas Financial
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between KYN and Nicholas is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding KYN Capital Group and Nicholas Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Financial 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 Nicholas Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Financial has no effect on the direction of KYN Capital i.e., KYN Capital and Nicholas Financial go up and down completely randomly.
Pair Corralation between KYN Capital and Nicholas Financial
If you would invest 619.00 in Nicholas Financial on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Nicholas Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
KYN Capital Group vs. Nicholas Financial
Performance |
| Timeline |
| KYN Capital Group |
| Nicholas Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
KYN Capital and Nicholas Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KYN Capital and Nicholas Financial
The main advantage of trading using opposite KYN Capital and Nicholas Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYN Capital position performs unexpectedly, Nicholas Financial 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 Nicholas Financial will offset losses from the drop in Nicholas Financial's long position.| KYN Capital vs. Visa Class A | KYN Capital vs. Mastercard | KYN Capital vs. American Express | KYN Capital vs. PayPal Holdings |
| Nicholas Financial vs. Regional Management Corp | Nicholas Financial vs. Orix Corp Ads | Nicholas Financial vs. FirstCash | Nicholas Financial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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