Correlation Between Sky Metals and Kneomedia
Can any of the company-specific risk be diversified away by investing in both Sky Metals and Kneomedia 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 Sky Metals and Kneomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sky Metals and Kneomedia, you can compare the effects of market volatilities on Sky Metals and Kneomedia 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 Sky Metals with a short position of Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sky Metals and Kneomedia.
Diversification Opportunities for Sky Metals and Kneomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sky and Kneomedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sky Metals and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia and Sky Metals 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 Sky Metals are associated (or correlated) with Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of Sky Metals i.e., Sky Metals and Kneomedia go up and down completely randomly.
Pair Corralation between Sky Metals and Kneomedia
Assuming the 90 days trading horizon Sky Metals is expected to generate 1.5 times less return on investment than Kneomedia. But when comparing it to its historical volatility, Sky Metals is 1.97 times less risky than Kneomedia. It trades about 0.03 of its potential returns per unit of risk. Kneomedia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 0.60 in Kneomedia on November 27, 2024 and sell it today you would lose (0.40) from holding Kneomedia or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Sky Metals vs. Kneomedia
Performance |
| Timeline |
| Sky Metals |
| Kneomedia |
Sky Metals and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sky Metals and Kneomedia
The main advantage of trading using opposite Sky Metals and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky Metals position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| Sky Metals vs. Lunnon Metals | Sky Metals vs. Air New Zealand | Sky Metals vs. ACDC Metals | Sky Metals vs. Neurotech International |
| Kneomedia vs. Arc Funds | Kneomedia vs. Autosports Group | Kneomedia vs. Platinum Asia Investments | Kneomedia vs. Southern Cross Media |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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