Correlation Between Root and Kion Group
Can any of the company-specific risk be diversified away by investing in both Root and Kion Group 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 Root and Kion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Root Inc and Kion Group AG, you can compare the effects of market volatilities on Root and Kion Group 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 Root with a short position of Kion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Root and Kion Group.
Diversification Opportunities for Root and Kion Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Root and Kion is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Root Inc and Kion Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kion Group AG and Root 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 Root Inc are associated (or correlated) with Kion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kion Group AG has no effect on the direction of Root i.e., Root and Kion Group go up and down completely randomly.
Pair Corralation between Root and Kion Group
Given the investment horizon of 90 days Root Inc is expected to generate 2.92 times more return on investment than Kion Group. However, Root is 2.92 times more volatile than Kion Group AG. It trades about 0.11 of its potential returns per unit of risk. Kion Group AG is currently generating about 0.02 per unit of risk. If you would invest 546.00 in Root Inc on September 4, 2024 and sell it today you would earn a total of 9,381 from holding Root Inc or generate 1718.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Root Inc vs. Kion Group AG
Performance |
| Timeline |
| Root Inc |
| Kion Group AG |
Root and Kion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Root and Kion Group
The main advantage of trading using opposite Root and Kion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Root position performs unexpectedly, Kion Group 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 Kion Group will offset losses from the drop in Kion Group's long position.| Root vs. Selective Insurance Group | Root vs. Donegal Group B | Root vs. Horace Mann Educators | Root vs. Global Indemnity PLC |
| Kion Group vs. Rev Group | Kion Group vs. Gencor Industries | Kion Group vs. Alamo Group | Kion Group vs. Wabash National |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |