Correlation Between RTL Group and KUAISHOU TECHNOLOGY
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By analyzing existing cross correlation between RTL Group SA and KUAISHOU TECHNOLOGY CLB, you can compare the effects of market volatilities on RTL Group and KUAISHOU TECHNOLOGY 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 RTL Group with a short position of KUAISHOU TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and KUAISHOU TECHNOLOGY.
Diversification Opportunities for RTL Group and KUAISHOU TECHNOLOGY
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RTL and KUAISHOU is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and KUAISHOU TECHNOLOGY CLB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KUAISHOU TECHNOLOGY CLB and RTL Group 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 RTL Group SA are associated (or correlated) with KUAISHOU TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KUAISHOU TECHNOLOGY CLB has no effect on the direction of RTL Group i.e., RTL Group and KUAISHOU TECHNOLOGY go up and down completely randomly.
Pair Corralation between RTL Group and KUAISHOU TECHNOLOGY
Assuming the 90 days trading horizon RTL Group is expected to generate 7.27 times less return on investment than KUAISHOU TECHNOLOGY. But when comparing it to its historical volatility, RTL Group SA is 1.95 times less risky than KUAISHOU TECHNOLOGY. It trades about 0.02 of its potential returns per unit of risk. KUAISHOU TECHNOLOGY CLB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 443.00 in KUAISHOU TECHNOLOGY CLB on November 2, 2024 and sell it today you would earn a total of 67.00 from holding KUAISHOU TECHNOLOGY CLB or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
RTL Group SA vs. KUAISHOU TECHNOLOGY CLB
Performance |
| Timeline |
| RTL Group SA |
| KUAISHOU TECHNOLOGY CLB |
RTL Group and KUAISHOU TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and KUAISHOU TECHNOLOGY
The main advantage of trading using opposite RTL Group and KUAISHOU TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group position performs unexpectedly, KUAISHOU TECHNOLOGY 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 KUAISHOU TECHNOLOGY will offset losses from the drop in KUAISHOU TECHNOLOGY's long position.| RTL Group vs. Khiron Life Sciences | RTL Group vs. KOBE STEEL LTD | RTL Group vs. Aristocrat Leisure Limited | RTL Group vs. The Japan Steel |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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