Correlation Between Cogent Communications and KSB SE
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By analyzing existing cross correlation between Cogent Communications Holdings and KSB SE Co, you can compare the effects of market volatilities on Cogent Communications and KSB SE 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 Cogent Communications with a short position of KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and KSB SE.
Diversification Opportunities for Cogent Communications and KSB SE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cogent and KSB is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB SE and Cogent Communications 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 Cogent Communications Holdings are associated (or correlated) with KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of Cogent Communications i.e., Cogent Communications and KSB SE go up and down completely randomly.
Pair Corralation between Cogent Communications and KSB SE
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to under-perform the KSB SE. In addition to that, Cogent Communications is 1.24 times more volatile than KSB SE Co. It trades about -0.08 of its total potential returns per unit of risk. KSB SE Co is currently generating about 0.02 per unit of volatility. If you would invest 60,200 in KSB SE Co on October 22, 2024 and sell it today you would earn a total of 200.00 from holding KSB SE Co or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. KSB SE Co
Performance |
| Timeline |
| Cogent Communications |
| KSB SE |
Cogent Communications and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and KSB SE
The main advantage of trading using opposite Cogent Communications and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, KSB SE 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 KSB SE will offset losses from the drop in KSB SE's long position.| Cogent Communications vs. MHP Hotel AG | Cogent Communications vs. HYATT HOTELS A | Cogent Communications vs. Zoom Video Communications | Cogent Communications vs. InterContinental Hotels 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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