Correlation Between Goodbye Kansas and CDON AB
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and CDON 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 CDON 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 CDON AB, you can compare the effects of market volatilities on Goodbye Kansas and CDON 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 CDON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and CDON AB.
Diversification Opportunities for Goodbye Kansas and CDON AB
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goodbye and CDON is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and CDON AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDON 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 CDON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDON AB has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and CDON AB go up and down completely randomly.
Pair Corralation between Goodbye Kansas and CDON AB
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 4.29 times more return on investment than CDON AB. However, Goodbye Kansas is 4.29 times more volatile than CDON AB. It trades about 0.02 of its potential returns per unit of risk. CDON AB is currently generating about -0.02 per unit of risk. If you would invest 15,824 in Goodbye Kansas Group on December 4, 2024 and sell it today you would lose (15,452) from holding Goodbye Kansas Group or give up 97.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Goodbye Kansas Group vs. CDON AB
Performance |
Timeline |
Goodbye Kansas Group |
CDON AB |
Goodbye Kansas and CDON AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goodbye Kansas and CDON AB
The main advantage of trading using opposite Goodbye Kansas and CDON AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, CDON 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 CDON AB will offset losses from the drop in CDON AB's long position.Goodbye Kansas vs. USWE Sports AB | Goodbye Kansas vs. JLT Mobile Computers | Goodbye Kansas vs. Svenska Handelsbanken AB | Goodbye Kansas vs. Nordic Asia Investment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |