Correlation Between VINCI SA and KION GROUP
Can any of the company-specific risk be diversified away by investing in both VINCI SA and KION GROUP 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 VINCI SA and KION GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VINCI SA and KION GROUP AG, you can compare the effects of market volatilities on VINCI SA and KION GROUP 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 VINCI SA with a short position of KION GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of VINCI SA and KION GROUP.
Diversification Opportunities for VINCI SA and KION GROUP
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between VINCI and KION is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding VINCI SA and KION GROUP AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION GROUP AG and VINCI SA 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 VINCI SA are associated (or correlated) with KION GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION GROUP AG has no effect on the direction of VINCI SA i.e., VINCI SA and KION GROUP go up and down completely randomly.
Pair Corralation between VINCI SA and KION GROUP
Assuming the 90 days horizon VINCI SA is expected to generate 0.82 times more return on investment than KION GROUP. However, VINCI SA is 1.22 times less risky than KION GROUP. It trades about -0.02 of its potential returns per unit of risk. KION GROUP AG is currently generating about -0.05 per unit of risk. If you would invest 10,897 in VINCI SA on September 12, 2024 and sell it today you would lose (158.00) from holding VINCI SA or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VINCI SA vs. KION GROUP AG
Performance |
| Timeline |
| VINCI SA |
| KION GROUP AG |
VINCI SA and KION GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VINCI SA and KION GROUP
The main advantage of trading using opposite VINCI SA and KION GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VINCI SA position performs unexpectedly, KION GROUP 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 KION GROUP will offset losses from the drop in KION GROUP's long position.| VINCI SA vs. Arcadis NV | VINCI SA vs. China Railway Group | VINCI SA vs. Skanska AB ser | VINCI SA vs. Digital Locations |
| KION GROUP vs. Caterpillar | KION GROUP vs. Deere Company | KION GROUP vs. Shyft Group | KION GROUP vs. Nikola 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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