Correlation Between NYSE Composite and Kion Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kion Group 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 Kion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kion Group AG, you can compare the effects of market volatilities on NYSE Composite and Kion Group 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 Kion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kion Group.
Diversification Opportunities for NYSE Composite and Kion Group
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Kion is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kion Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kion Group AG 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 Kion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kion Group AG has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kion Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Kion Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.25 times more return on investment than Kion Group. However, NYSE Composite is 3.98 times less risky than Kion Group. It trades about 0.09 of its potential returns per unit of risk. Kion Group AG is currently generating about 0.0 per unit of risk. If you would invest 1,901,742 in NYSE Composite on November 2, 2024 and sell it today you would earn a total of 114,880 from holding NYSE Composite or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kion Group AG
Performance |
| Timeline |
NYSE Composite and Kion Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kion Group AG
Pair trading matchups for Kion Group
Pair Trading with NYSE Composite and Kion Group
The main advantage of trading using opposite NYSE Composite and Kion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kion Group 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 Kion Group will offset losses from the drop in Kion Group's long position.| NYSE Composite vs. Western Copper and | NYSE Composite vs. Chemours Co | NYSE Composite vs. IPG Photonics | NYSE Composite vs. Morgan Advanced Materials |
| Kion Group vs. Xos Inc | Kion Group vs. Nikola Corp | Kion Group vs. Ideanomics | Kion Group vs. Hydrofarm Holdings Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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