Correlation Between Mesabi Trust and Kaman
Can any of the company-specific risk be diversified away by investing in both Mesabi Trust and Kaman 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 Mesabi Trust and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesabi Trust and Kaman, you can compare the effects of market volatilities on Mesabi Trust and Kaman 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 Mesabi Trust with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesabi Trust and Kaman.
Diversification Opportunities for Mesabi Trust and Kaman
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mesabi and Kaman is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mesabi Trust and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and Mesabi Trust 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 Mesabi Trust are associated (or correlated) with Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of Mesabi Trust i.e., Mesabi Trust and Kaman go up and down completely randomly.
Pair Corralation between Mesabi Trust and Kaman
If you would invest 2,432 in Mesabi Trust on August 24, 2024 and sell it today you would earn a total of 222.00 from holding Mesabi Trust or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Mesabi Trust vs. Kaman
Performance |
| Timeline |
| Mesabi Trust |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesabi Trust and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesabi Trust and Kaman
The main advantage of trading using opposite Mesabi Trust and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesabi Trust position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.| Mesabi Trust vs. Olympic Steel | Mesabi Trust vs. Universal Stainless Alloy | Mesabi Trust vs. POSCO Holdings | Mesabi Trust vs. Outokumpu Oyj ADR |
| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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