Correlation Between Steven Madden and Kaiser
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By analyzing existing cross correlation between Steven Madden and Kaiser Permanente, you can compare the effects of market volatilities on Steven Madden and Kaiser 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 Steven Madden with a short position of Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and Kaiser.
Diversification Opportunities for Steven Madden and Kaiser
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Steven and Kaiser is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente and Steven Madden 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 Steven Madden are associated (or correlated) with Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Steven Madden i.e., Steven Madden and Kaiser go up and down completely randomly.
Pair Corralation between Steven Madden and Kaiser
Given the investment horizon of 90 days Steven Madden is expected to generate 1.33 times more return on investment than Kaiser. However, Steven Madden is 1.33 times more volatile than Kaiser Permanente. It trades about 0.08 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.1 per unit of risk. If you would invest 4,489 in Steven Madden on September 4, 2024 and sell it today you would earn a total of 129.00 from holding Steven Madden or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Steven Madden vs. Kaiser Permanente
Performance |
| Timeline |
| Steven Madden |
| Kaiser Permanente |
Steven Madden and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and Kaiser
The main advantage of trading using opposite Steven Madden and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser's long position.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| Kaiser vs. World Houseware Limited | Kaiser vs. Steven Madden | Kaiser vs. Virgin Group Acquisition | Kaiser vs. Griffon |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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