Correlation Between Goodbye Kansas and Boozt AB

Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Boozt AB 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 Goodbye Kansas and Boozt AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goodbye Kansas Group and Boozt AB, you can compare the effects of market volatilities on Goodbye Kansas and Boozt AB 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 Goodbye Kansas with a short position of Boozt AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Boozt AB.

Diversification Opportunities for Goodbye Kansas and Boozt AB

-0.02

Correlation Coefficient

Goodbye Kansas  Boozt AB

Good diversification

The 3 months correlation between Goodbye and Boozt is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Boozt AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boozt AB and Goodbye Kansas 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 Goodbye Kansas Group are associated (or correlated) with Boozt AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boozt AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Boozt AB go up and down completely randomly.

Pair Corralation between Goodbye Kansas and Boozt AB

Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 1.77 times more return on investment than Boozt AB. However, Goodbye Kansas is 1.77 times more volatile than Boozt AB. It trades about 0.18 of its potential returns per unit of risk. Boozt AB is currently generating about 0.09 per unit of risk. If you would invest  130.00  in Goodbye Kansas Group on October 17, 2024 and sell it today you would earn a total of  33.00  from holding Goodbye Kansas Group or generate 25.38% return on investment over 90 days.

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

Goodbye Kansas Group  vs.  Boozt AB

Goodbye Kansas Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goodbye Kansas Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Goodbye Kansas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Boozt AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boozt AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Goodbye Kansas and Boozt AB

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

The idea behind Goodbye Kansas Group and Boozt AB 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.