Correlation Between PFMT Old and K Bro
Can any of the company-specific risk be diversified away by investing in both PFMT Old and K Bro 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 PFMT Old and K Bro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFMT Old and K Bro Linen, you can compare the effects of market volatilities on PFMT Old and K Bro 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 PFMT Old with a short position of K Bro. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFMT Old and K Bro.
Diversification Opportunities for PFMT Old and K Bro
Very good diversification
The 3 months correlation between PFMT and KBRLF is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PFMT Old and K Bro Linen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Bro Linen and PFMT Old 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 PFMT Old are associated (or correlated) with K Bro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Bro Linen has no effect on the direction of PFMT Old i.e., PFMT Old and K Bro go up and down completely randomly.
Pair Corralation between PFMT Old and K Bro
If you would invest 2,625 in K Bro Linen on October 22, 2024 and sell it today you would earn a total of 0.00 from holding K Bro Linen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PFMT Old vs. K Bro Linen
Performance |
| Timeline |
| PFMT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| K Bro Linen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PFMT Old and K Bro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFMT Old and K Bro
The main advantage of trading using opposite PFMT Old and K Bro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFMT Old position performs unexpectedly, K Bro 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 K Bro will offset losses from the drop in K Bro's long position.| PFMT Old vs. Network 1 Technologies | PFMT Old vs. Rentokil Initial PLC | PFMT Old vs. Wilhelmina | PFMT Old vs. Mader Group Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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