Correlation Between Takkt AG and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both Takkt AG and Konica Minolta 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 Takkt AG and Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takkt AG and Konica Minolta, you can compare the effects of market volatilities on Takkt AG and Konica Minolta 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 Takkt AG with a short position of Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takkt AG and Konica Minolta.
Diversification Opportunities for Takkt AG and Konica Minolta
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Takkt and Konica is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Takkt AG and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta and Takkt AG 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 Takkt AG are associated (or correlated) with Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of Takkt AG i.e., Takkt AG and Konica Minolta go up and down completely randomly.
Pair Corralation between Takkt AG and Konica Minolta
Assuming the 90 days trading horizon Takkt AG is expected to generate 1.08 times more return on investment than Konica Minolta. However, Takkt AG is 1.08 times more volatile than Konica Minolta. It trades about 0.09 of its potential returns per unit of risk. Konica Minolta is currently generating about 0.06 per unit of risk. If you would invest 849.00 in Takkt AG on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Takkt AG or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Takkt AG vs. Konica Minolta
Performance |
| Timeline |
| Takkt AG |
| Konica Minolta |
Takkt AG and Konica Minolta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takkt AG and Konica Minolta
The main advantage of trading using opposite Takkt AG and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takkt AG position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.| Takkt AG vs. NIPPON STEEL SPADR | Takkt AG vs. Tianjin Capital Environmental | Takkt AG vs. Air Lease | Takkt AG vs. Sims Metal Management |
| Konica Minolta vs. OURGAME INTHOLDL 00005 | Konica Minolta vs. Sims Metal Management | Konica Minolta vs. Games Workshop Group | Konica Minolta vs. HOCHSCHILD MINING |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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