Correlation Between Green Globe and KYN Capital
Can any of the company-specific risk be diversified away by investing in both Green Globe and KYN Capital 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 Green Globe and KYN Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Globe International and KYN Capital Group, you can compare the effects of market volatilities on Green Globe and KYN Capital 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 Green Globe with a short position of KYN Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Globe and KYN Capital.
Diversification Opportunities for Green Globe and KYN Capital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Green and KYN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Green Globe International and KYN Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYN Capital Group and Green Globe 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 Green Globe International are associated (or correlated) with KYN Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYN Capital Group has no effect on the direction of Green Globe i.e., Green Globe and KYN Capital go up and down completely randomly.
Pair Corralation between Green Globe and KYN Capital
Given the investment horizon of 90 days Green Globe International is expected to generate 2.49 times more return on investment than KYN Capital. However, Green Globe is 2.49 times more volatile than KYN Capital Group. It trades about 0.14 of its potential returns per unit of risk. KYN Capital Group is currently generating about 0.08 per unit of risk. If you would invest 0.03 in Green Globe International on December 2, 2024 and sell it today you would lose (0.01) from holding Green Globe International or give up 33.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Green Globe International vs. KYN Capital Group
Performance |
Timeline |
Green Globe International |
KYN Capital Group |
Green Globe and KYN Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green Globe and KYN Capital
The main advantage of trading using opposite Green Globe and KYN Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Globe position performs unexpectedly, KYN Capital 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 KYN Capital will offset losses from the drop in KYN Capital's long position.Green Globe vs. Kaival Brands Innovations | Green Globe vs. Greenlane Holdings | Green Globe vs. RLX Technology | Green Globe vs. 22nd Century Group |
KYN Capital vs. Capital Financial Gl | KYN Capital vs. Baron Capital | KYN Capital vs. CYIOS | KYN Capital vs. Cosmos Group Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |