Correlation Between Volkswagen and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Volkswagen and Kolibri Global 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 Volkswagen and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volkswagen AG and Kolibri Global Energy, you can compare the effects of market volatilities on Volkswagen and Kolibri Global 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 Volkswagen with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and Kolibri Global.
Diversification Opportunities for Volkswagen and Kolibri Global
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and Kolibri is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and Volkswagen 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 Volkswagen AG are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Volkswagen i.e., Volkswagen and Kolibri Global go up and down completely randomly.
Pair Corralation between Volkswagen and Kolibri Global
If you would invest 449.00 in Kolibri Global Energy on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Kolibri Global Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Volkswagen AG vs. Kolibri Global Energy
Performance |
| Timeline |
| Volkswagen AG |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Volkswagen and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and Kolibri Global
The main advantage of trading using opposite Volkswagen and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Volkswagen vs. Volkswagen AG 110 | Volkswagen vs. Stellantis NV | Volkswagen vs. Toyota Motor | Volkswagen vs. Honda Motor Co |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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