Correlation Between CONCORDIA FINL and KYUSHU EL
Can any of the company-specific risk be diversified away by investing in both CONCORDIA FINL and KYUSHU EL 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 CONCORDIA FINL and KYUSHU EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONCORDIA FINL GROUP and KYUSHU EL PWR, you can compare the effects of market volatilities on CONCORDIA FINL and KYUSHU EL 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 CONCORDIA FINL with a short position of KYUSHU EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONCORDIA FINL and KYUSHU EL.
Diversification Opportunities for CONCORDIA FINL and KYUSHU EL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CONCORDIA and KYUSHU is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CONCORDIA FINL GROUP and KYUSHU EL PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYUSHU EL PWR and CONCORDIA FINL 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 CONCORDIA FINL GROUP are associated (or correlated) with KYUSHU EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYUSHU EL PWR has no effect on the direction of CONCORDIA FINL i.e., CONCORDIA FINL and KYUSHU EL go up and down completely randomly.
Pair Corralation between CONCORDIA FINL and KYUSHU EL
Assuming the 90 days horizon CONCORDIA FINL GROUP is expected to generate 0.82 times more return on investment than KYUSHU EL. However, CONCORDIA FINL GROUP is 1.22 times less risky than KYUSHU EL. It trades about 0.03 of its potential returns per unit of risk. KYUSHU EL PWR is currently generating about -0.05 per unit of risk. If you would invest 515.00 in CONCORDIA FINL GROUP on November 2, 2024 and sell it today you would earn a total of 20.00 from holding CONCORDIA FINL GROUP or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
CONCORDIA FINL GROUP vs. KYUSHU EL PWR
Performance |
| Timeline |
| CONCORDIA FINL GROUP |
| KYUSHU EL PWR |
CONCORDIA FINL and KYUSHU EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONCORDIA FINL and KYUSHU EL
The main advantage of trading using opposite CONCORDIA FINL and KYUSHU EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONCORDIA FINL position performs unexpectedly, KYUSHU EL 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 KYUSHU EL will offset losses from the drop in KYUSHU EL's long position.| CONCORDIA FINL vs. Transport International Holdings | CONCORDIA FINL vs. Gol Intelligent Airlines | CONCORDIA FINL vs. Fukuyama Transporting Co | CONCORDIA FINL vs. Aegean Airlines SA |
| KYUSHU EL vs. Scottish Mortgage Investment | KYUSHU EL vs. PRECISION DRILLING P | KYUSHU EL vs. Urban Outfitters | KYUSHU EL vs. URBAN OUTFITTERS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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