Correlation Between NYSE Composite and Kalera Public
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kalera Public 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 NYSE Composite and Kalera Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kalera Public Limited, you can compare the effects of market volatilities on NYSE Composite and Kalera Public 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 NYSE Composite with a short position of Kalera Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kalera Public.
Diversification Opportunities for NYSE Composite and Kalera Public
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Kalera is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kalera Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalera Public Limited and NYSE Composite 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 NYSE Composite are associated (or correlated) with Kalera Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalera Public Limited has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kalera Public go up and down completely randomly.
Pair Corralation between NYSE Composite and Kalera Public
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.04 times more return on investment than Kalera Public. However, NYSE Composite is 24.26 times less risky than Kalera Public. It trades about 0.06 of its potential returns per unit of risk. Kalera Public Limited is currently generating about -0.16 per unit of risk. If you would invest 1,601,609 in NYSE Composite on November 6, 2024 and sell it today you would earn a total of 385,424 from holding NYSE Composite or generate 24.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 17.44% |
| Values | Daily Returns |
NYSE Composite vs. Kalera Public Limited
Performance |
| Timeline |
NYSE Composite and Kalera Public Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kalera Public Limited
Pair trading matchups for Kalera Public
Pair Trading with NYSE Composite and Kalera Public
The main advantage of trading using opposite NYSE Composite and Kalera Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kalera Public 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 Kalera Public will offset losses from the drop in Kalera Public's long position.| NYSE Composite vs. Eldorado Gold Corp | NYSE Composite vs. Nicola Mining | NYSE Composite vs. Paranovus Entertainment Technology | NYSE Composite vs. Electrovaya Common Shares |
| Kalera Public vs. Global Clean Energy | Kalera Public vs. Limoneira Co | Kalera Public vs. Edible Garden AG | Kalera Public vs. Golden Agri Resources |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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