Correlation Between Graco and KUKA Aktiengesellscha

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

By analyzing existing cross correlation between Graco Inc and KUKA Aktiengesellschaft, you can compare the effects of market volatilities on Graco and KUKA Aktiengesellscha 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 Graco with a short position of KUKA Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graco and KUKA Aktiengesellscha.

Diversification Opportunities for Graco and KUKA Aktiengesellscha

0.0

Correlation Coefficient

Graco  KUKA Aktiengesellscha

Pay attention - limited upside

The 3 months correlation between Graco and KUKA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Graco Inc and KUKA Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KUKA Aktiengesellschaft and Graco 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 Graco Inc are associated (or correlated) with KUKA Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KUKA Aktiengesellschaft has no effect on the direction of Graco i.e., Graco and KUKA Aktiengesellscha go up and down completely randomly.

Pair Corralation between Graco and KUKA Aktiengesellscha

If you would invest  8,140  in Graco Inc on September 2, 2024 and sell it today you would earn a total of  968.00  from holding Graco Inc or generate 11.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Graco Inc  vs.  KUKA Aktiengesellschaft

Graco Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Graco Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Graco may actually be approaching a critical reversion point that can send shares even higher in January 2025.

KUKA Aktiengesellschaft

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Graco and KUKA Aktiengesellscha

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

The idea behind Graco Inc and KUKA Aktiengesellschaft 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.