Correlation Between OFFICE DEPOT and KAUFMAN ET
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and KAUFMAN ET 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 KAUFMAN ET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and KAUFMAN ET BROAD, you can compare the effects of market volatilities on OFFICE DEPOT and KAUFMAN ET 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 KAUFMAN ET. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and KAUFMAN ET.
Diversification Opportunities for OFFICE DEPOT and KAUFMAN ET
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and KAUFMAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and KAUFMAN ET BROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAUFMAN ET BROAD 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 KAUFMAN ET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAUFMAN ET BROAD has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and KAUFMAN ET go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and KAUFMAN ET
If you would invest 3,250 in KAUFMAN ET BROAD on November 6, 2024 and sell it today you would earn a total of 55.00 from holding KAUFMAN ET BROAD or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
OFFICE DEPOT vs. KAUFMAN ET BROAD
Performance |
| Timeline |
| OFFICE DEPOT |
| KAUFMAN ET BROAD |
OFFICE DEPOT and KAUFMAN ET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and KAUFMAN ET
The main advantage of trading using opposite OFFICE DEPOT and KAUFMAN ET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, KAUFMAN ET 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 KAUFMAN ET will offset losses from the drop in KAUFMAN ET's long position.| OFFICE DEPOT vs. X FAB Silicon Foundries | OFFICE DEPOT vs. EITZEN CHEMICALS | OFFICE DEPOT vs. KINGBOARD CHEMICAL | OFFICE DEPOT vs. Zijin Mining Group |
| KAUFMAN ET vs. CHRYSALIS INVESTMENTS LTD | KAUFMAN ET vs. Keck Seng Investments | KAUFMAN ET vs. FIREWEED METALS P | KAUFMAN ET vs. HK Electric Investments |
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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