Correlation Between Opus Magnum and Kasten
Can any of the company-specific risk be diversified away by investing in both Opus Magnum and Kasten 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 Opus Magnum and Kasten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opus Magnum Ameris and Kasten Inc, you can compare the effects of market volatilities on Opus Magnum and Kasten 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 Opus Magnum with a short position of Kasten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opus Magnum and Kasten.
Diversification Opportunities for Opus Magnum and Kasten
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Opus and Kasten is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opus Magnum Ameris and Kasten Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasten Inc and Opus Magnum 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 Opus Magnum Ameris are associated (or correlated) with Kasten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasten Inc has no effect on the direction of Opus Magnum i.e., Opus Magnum and Kasten go up and down completely randomly.
Pair Corralation between Opus Magnum and Kasten
Given the investment horizon of 90 days Opus Magnum Ameris is expected to generate 3.99 times more return on investment than Kasten. However, Opus Magnum is 3.99 times more volatile than Kasten Inc. It trades about 0.06 of its potential returns per unit of risk. Kasten Inc is currently generating about 0.05 per unit of risk. If you would invest 0.01 in Opus Magnum Ameris on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Opus Magnum Ameris or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opus Magnum Ameris vs. Kasten Inc
Performance |
| Timeline |
| Opus Magnum Ameris |
| Kasten Inc |
Opus Magnum and Kasten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opus Magnum and Kasten
The main advantage of trading using opposite Opus Magnum and Kasten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opus Magnum position performs unexpectedly, Kasten 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 Kasten will offset losses from the drop in Kasten's long position.| Opus Magnum vs. Green Planet Bio | Opus Magnum vs. Azure Holding Group | Opus Magnum vs. Four Leaf Acquisition | Opus Magnum vs. Continental Beverage Brands |
| Kasten vs. Green Planet Bio | Kasten vs. Azure Holding Group | Kasten vs. Four Leaf Acquisition | Kasten vs. Opus Magnum Ameris |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |