Correlation Between Trade Desk and KENTIMA HOLDING
Can any of the company-specific risk be diversified away by investing in both Trade Desk and KENTIMA HOLDING 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 Trade Desk and KENTIMA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Trade Desk and KENTIMA HOLDING AB, you can compare the effects of market volatilities on Trade Desk and KENTIMA HOLDING 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 Trade Desk with a short position of KENTIMA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and KENTIMA HOLDING.
Diversification Opportunities for Trade Desk and KENTIMA HOLDING
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trade and KENTIMA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Trade Desk and KENTIMA HOLDING AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENTIMA HOLDING AB and Trade Desk 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 The Trade Desk are associated (or correlated) with KENTIMA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENTIMA HOLDING AB has no effect on the direction of Trade Desk i.e., Trade Desk and KENTIMA HOLDING go up and down completely randomly.
Pair Corralation between Trade Desk and KENTIMA HOLDING
Assuming the 90 days horizon The Trade Desk is expected to under-perform the KENTIMA HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, The Trade Desk is 4.93 times less risky than KENTIMA HOLDING. The stock trades about -0.07 of its potential returns per unit of risk. The KENTIMA HOLDING AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16.00 in KENTIMA HOLDING AB on November 4, 2024 and sell it today you would earn a total of 1.00 from holding KENTIMA HOLDING AB or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Trade Desk vs. KENTIMA HOLDING AB
Performance |
| Timeline |
| Trade Desk |
| KENTIMA HOLDING AB |
Trade Desk and KENTIMA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Desk and KENTIMA HOLDING
The main advantage of trading using opposite Trade Desk and KENTIMA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Desk position performs unexpectedly, KENTIMA HOLDING 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 KENTIMA HOLDING will offset losses from the drop in KENTIMA HOLDING's long position.| Trade Desk vs. LG Display Co | Trade Desk vs. PLAY2CHILL SA ZY | Trade Desk vs. PLAYTECH | Trade Desk vs. InPlay Oil Corp |
| KENTIMA HOLDING vs. ePlay Digital | KENTIMA HOLDING vs. Texas Roadhouse | KENTIMA HOLDING vs. Television Broadcasts Limited | KENTIMA HOLDING vs. QUEEN S ROAD |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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