Correlation Between Sacks Parente and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both Sacks Parente and Kenon Holdings 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 Sacks Parente and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sacks Parente Golf, and Kenon Holdings, you can compare the effects of market volatilities on Sacks Parente and Kenon Holdings 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 Sacks Parente with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sacks Parente and Kenon Holdings.
Diversification Opportunities for Sacks Parente and Kenon Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sacks and Kenon is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sacks Parente Golf, and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and Sacks Parente 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 Sacks Parente Golf, are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of Sacks Parente i.e., Sacks Parente and Kenon Holdings go up and down completely randomly.
Pair Corralation between Sacks Parente and Kenon Holdings
Given the investment horizon of 90 days Sacks Parente Golf, is expected to under-perform the Kenon Holdings. In addition to that, Sacks Parente is 1.78 times more volatile than Kenon Holdings. It trades about -0.07 of its total potential returns per unit of risk. Kenon Holdings is currently generating about 0.23 per unit of volatility. If you would invest 2,811 in Kenon Holdings on September 5, 2024 and sell it today you would earn a total of 269.00 from holding Kenon Holdings or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sacks Parente Golf, vs. Kenon Holdings
Performance |
| Timeline |
| Sacks Parente Golf, |
| Kenon Holdings |
Sacks Parente and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sacks Parente and Kenon Holdings
The main advantage of trading using opposite Sacks Parente and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sacks Parente position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| Sacks Parente vs. Kenon Holdings | Sacks Parente vs. National Beverage Corp | Sacks Parente vs. Western Midstream Partners | Sacks Parente vs. Atmos Energy |
| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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