Correlation Between Marks and Kaufman Et
Can any of the company-specific risk be diversified away by investing in both Marks and Kaufman Et 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 Marks and Kaufman Et into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks and Spencer and Kaufman Et Broad, you can compare the effects of market volatilities on Marks and Kaufman Et 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 Marks with a short position of Kaufman Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks and Kaufman Et.
Diversification Opportunities for Marks and Kaufman Et
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marks and Kaufman is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Marks and Spencer and Kaufman Et Broad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Et Broad and Marks 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 Marks and Spencer are associated (or correlated) with Kaufman Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Et Broad has no effect on the direction of Marks i.e., Marks and Kaufman Et go up and down completely randomly.
Pair Corralation between Marks and Kaufman Et
Assuming the 90 days trading horizon Marks and Spencer is expected to generate 0.94 times more return on investment than Kaufman Et. However, Marks and Spencer is 1.06 times less risky than Kaufman Et. It trades about 0.07 of its potential returns per unit of risk. Kaufman Et Broad is currently generating about -0.04 per unit of risk. If you would invest 36,824 in Marks and Spencer on September 19, 2024 and sell it today you would earn a total of 2,066 from holding Marks and Spencer or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Marks and Spencer vs. Kaufman Et Broad
Performance |
| Timeline |
| Marks and Spencer |
| Kaufman Et Broad |
Marks and Kaufman Et Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marks and Kaufman Et
The main advantage of trading using opposite Marks and Kaufman Et positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks position performs unexpectedly, Kaufman Et 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 Kaufman Et will offset losses from the drop in Kaufman Et's long position.| Marks vs. Kaufman Et Broad | Marks vs. LPKF Laser Electronics | Marks vs. Southern Copper Corp | Marks vs. Fevertree Drinks Plc |
| Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Hyundai Motor | Kaufman Et vs. Reliance Industries Ltd |
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
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |