Correlation Between KTAM Gold and United Robotics
Can any of the company-specific risk be diversified away by investing in both KTAM Gold and United Robotics 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 KTAM Gold and United Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTAM Gold ETF and United Robotics Artificial, you can compare the effects of market volatilities on KTAM Gold and United Robotics 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 KTAM Gold with a short position of United Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and United Robotics.
Diversification Opportunities for KTAM Gold and United Robotics
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KTAM and United is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and United Robotics Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Robotics Arti and KTAM Gold 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 KTAM Gold ETF are associated (or correlated) with United Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Robotics Arti has no effect on the direction of KTAM Gold i.e., KTAM Gold and United Robotics go up and down completely randomly.
Pair Corralation between KTAM Gold and United Robotics
Assuming the 90 days trading horizon KTAM Gold is expected to generate 3.89 times less return on investment than United Robotics. But when comparing it to its historical volatility, KTAM Gold ETF is 1.99 times less risky than United Robotics. It trades about 0.06 of its potential returns per unit of risk. United Robotics Artificial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,240 in United Robotics Artificial on October 6, 2024 and sell it today you would earn a total of 119.00 from holding United Robotics Artificial or generate 9.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.59% |
Values | Daily Returns |
KTAM Gold ETF vs. United Robotics Artificial
Performance |
Timeline |
KTAM Gold ETF |
United Robotics Arti |
KTAM Gold and United Robotics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KTAM Gold and United Robotics
The main advantage of trading using opposite KTAM Gold and United Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, United Robotics 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 United Robotics will offset losses from the drop in United Robotics' long position.KTAM Gold vs. ThaiDex SET50 Exchange | KTAM Gold vs. BCAP MSCI Thailand | KTAM Gold vs. BCAP SET100 | KTAM Gold vs. WISE KTAM CSI |
United Robotics vs. United Hero ETF | United Robotics vs. BCAP SET100 | United Robotics vs. WISE KTAM CSI | United Robotics vs. KTAM Gold ETF |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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