Correlation Between OFFICE DEPOT and KERNEL HLDG
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and KERNEL HLDG 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 OFFICE DEPOT and KERNEL HLDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and KERNEL HLDG, you can compare the effects of market volatilities on OFFICE DEPOT and KERNEL HLDG 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 OFFICE DEPOT with a short position of KERNEL HLDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and KERNEL HLDG.
Diversification Opportunities for OFFICE DEPOT and KERNEL HLDG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and KERNEL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and KERNEL HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERNEL HLDG and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with KERNEL HLDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERNEL HLDG has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and KERNEL HLDG go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and KERNEL HLDG
If you would invest 295.00 in KERNEL HLDG on November 3, 2024 and sell it today you would earn a total of 104.00 from holding KERNEL HLDG or generate 35.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OFFICE DEPOT vs. KERNEL HLDG
Performance |
| Timeline |
| OFFICE DEPOT |
| KERNEL HLDG |
OFFICE DEPOT and KERNEL HLDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and KERNEL HLDG
The main advantage of trading using opposite OFFICE DEPOT and KERNEL HLDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, KERNEL HLDG 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 KERNEL HLDG will offset losses from the drop in KERNEL HLDG's long position.| OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc |
| KERNEL HLDG vs. Ringmetall SE | KERNEL HLDG vs. Suntory Beverage Food | KERNEL HLDG vs. East Africa Metals | KERNEL HLDG vs. Zijin Mining 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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