Correlation Between Kaufman Broad and QUEEN S

Can any of the company-specific risk be diversified away by investing in both Kaufman Broad and QUEEN S 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 Kaufman Broad and QUEEN S into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kaufman Broad SA and QUEEN S ROAD, you can compare the effects of market volatilities on Kaufman Broad and QUEEN S 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 Kaufman Broad with a short position of QUEEN S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and QUEEN S.

Diversification Opportunities for Kaufman Broad and QUEEN S

-0.12

Correlation Coefficient

Kaufman Broad  QUEEN S

Good diversification

The 3 months correlation between Kaufman and QUEEN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and QUEEN S ROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUEEN S ROAD and Kaufman Broad 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 Kaufman Broad SA are associated (or correlated) with QUEEN S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUEEN S ROAD has no effect on the direction of Kaufman Broad i.e., Kaufman Broad and QUEEN S go up and down completely randomly.

Pair Corralation between Kaufman Broad and QUEEN S

Assuming the 90 days horizon Kaufman Broad SA is expected to under-perform the QUEEN S. But the stock apears to be less risky and, when comparing its historical volatility, Kaufman Broad SA is 2.54 times less risky than QUEEN S. The stock trades about -0.24 of its potential returns per unit of risk. The QUEEN S ROAD is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  47.00  in QUEEN S ROAD on September 12, 2024 and sell it today you would earn a total of  0.00  from holding QUEEN S ROAD or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kaufman Broad SA  vs.  QUEEN S ROAD

Kaufman Broad SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaufman Broad SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kaufman Broad is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

QUEEN S ROAD

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QUEEN S ROAD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QUEEN S may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Kaufman Broad and QUEEN S

The main advantage of trading using opposite Kaufman Broad and QUEEN S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad position performs unexpectedly, QUEEN S 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 QUEEN S will offset losses from the drop in QUEEN S's long position.

The idea behind Kaufman Broad SA and QUEEN S ROAD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.