Correlation Between Old Republic and Kuka AG
Can any of the company-specific risk be diversified away by investing in both Old Republic and Kuka AG 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 Old Republic and Kuka AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and Kuka AG ADR, you can compare the effects of market volatilities on Old Republic and Kuka AG 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 Old Republic with a short position of Kuka AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and Kuka AG.
Diversification Opportunities for Old Republic and Kuka AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Old and Kuka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and Kuka AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuka AG ADR and Old Republic 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 Old Republic International are associated (or correlated) with Kuka AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuka AG ADR has no effect on the direction of Old Republic i.e., Old Republic and Kuka AG go up and down completely randomly.
Pair Corralation between Old Republic and Kuka AG
If you would invest 3,430 in Old Republic International on September 12, 2024 and sell it today you would earn a total of 211.00 from holding Old Republic International or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Old Republic International vs. Kuka AG ADR
Performance |
| Timeline |
| Old Republic Interna |
| Kuka AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Old Republic and Kuka AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and Kuka AG
The main advantage of trading using opposite Old Republic and Kuka AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic position performs unexpectedly, Kuka AG 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 Kuka AG will offset losses from the drop in Kuka AG's long position.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| Kuka AG vs. Luxfer Holdings PLC | Kuka AG vs. Bright Scholar Education | Kuka AG vs. Ihuman Inc | Kuka AG vs. Stepan Company |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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