Correlation Between NYSE Composite and Kalo Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kalo Gold 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 Kalo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kalo Gold Holdings, you can compare the effects of market volatilities on NYSE Composite and Kalo Gold 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 Kalo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kalo Gold.
Diversification Opportunities for NYSE Composite and Kalo Gold
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Kalo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kalo Gold Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalo Gold Holdings 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 Kalo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalo Gold Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kalo Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Kalo Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.05 times more return on investment than Kalo Gold. However, NYSE Composite is 20.02 times less risky than Kalo Gold. It trades about -0.07 of its potential returns per unit of risk. Kalo Gold Holdings is currently generating about -0.08 per unit of risk. If you would invest 2,001,587 in NYSE Composite on September 12, 2024 and sell it today you would lose (13,397) from holding NYSE Composite or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Kalo Gold Holdings
Performance |
| Timeline |
NYSE Composite and Kalo Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kalo Gold Holdings
Pair trading matchups for Kalo Gold
Pair Trading with NYSE Composite and Kalo Gold
The main advantage of trading using opposite NYSE Composite and Kalo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kalo Gold 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 Kalo Gold will offset losses from the drop in Kalo Gold's long position.| NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
| Kalo Gold vs. Big Ridge Gold | Kalo Gold vs. Radisson Mining Resources | Kalo Gold vs. Roscan Gold Corp | Kalo Gold vs. Independence Gold Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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