Correlation Between Pinterest and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Pinterest and Kolibri Global 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 Pinterest and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Kolibri Global Energy, you can compare the effects of market volatilities on Pinterest and Kolibri Global 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 Pinterest with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Kolibri Global.
Diversification Opportunities for Pinterest and Kolibri Global
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinterest and Kolibri is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and Pinterest 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 Pinterest are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Pinterest i.e., Pinterest and Kolibri Global go up and down completely randomly.
Pair Corralation between Pinterest and Kolibri Global
Given the investment horizon of 90 days Pinterest is expected to generate 7.04 times less return on investment than Kolibri Global. But when comparing it to its historical volatility, Pinterest is 1.6 times less risky than Kolibri Global. It trades about 0.1 of its potential returns per unit of risk. Kolibri Global Energy is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Kolibri Global Energy on October 24, 2024 and sell it today you would earn a total of 176.00 from holding Kolibri Global Energy or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pinterest vs. Kolibri Global Energy
Performance |
| Timeline |
| Kolibri Global Energy |
Pinterest and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Kolibri Global
The main advantage of trading using opposite Pinterest and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
| Kolibri Global vs. Dave Busters Entertainment | Kolibri Global vs. Arrow Electronics | Kolibri Global vs. BCE Inc | Kolibri Global vs. Pinterest |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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