Correlation Between SCOR PK and Kurv Technology
Can any of the company-specific risk be diversified away by investing in both SCOR PK and Kurv Technology 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 SCOR PK and Kurv Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Kurv Technology Titans, you can compare the effects of market volatilities on SCOR PK and Kurv 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 SCOR PK with a short position of Kurv Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Kurv Technology.
Diversification Opportunities for SCOR PK and Kurv Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCOR and Kurv is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans and SCOR PK 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 SCOR PK are associated (or correlated) with Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of SCOR PK i.e., SCOR PK and Kurv Technology go up and down completely randomly.
Pair Corralation between SCOR PK and Kurv Technology
Assuming the 90 days horizon SCOR PK is expected to generate 1.84 times more return on investment than Kurv Technology. However, SCOR PK is 1.84 times more volatile than Kurv Technology Titans. It trades about 0.04 of its potential returns per unit of risk. Kurv Technology Titans is currently generating about 0.02 per unit of risk. If you would invest 247.00 in SCOR PK on October 20, 2024 and sell it today you would earn a total of 4.00 from holding SCOR PK or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR PK vs. Kurv Technology Titans
Performance |
| Timeline |
| SCOR PK |
| Kurv Technology Titans |
SCOR PK and Kurv Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Kurv Technology
The main advantage of trading using opposite SCOR PK and Kurv Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, Kurv 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 Kurv Technology will offset losses from the drop in Kurv Technology's long position.The idea behind SCOR PK and Kurv Technology Titans pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kurv Technology vs. First Trust Technology | Kurv Technology vs. Fidelity MSCI Information | Kurv Technology vs. First Trust Nasdaq | Kurv Technology vs. iShares Expanded Tech Software |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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