Correlation Between Knights Of and Kngt Clb

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

By analyzing existing cross correlation between Knights Of Columbus and Kngt Clb Eqy, you can compare the effects of market volatilities on Knights Of and Kngt Clb 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 Knights Of with a short position of Kngt Clb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knights Of and Kngt Clb.

Diversification Opportunities for Knights Of and Kngt Clb

0.19

Correlation Coefficient

Knights Of  Kngt Clb

Average diversification

The 3 months correlation between Knights and Kngt is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Knights Of Columbus and Kngt Clb Eqy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kngt Clb Eqy and Knights Of 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 Knights Of Columbus are associated (or correlated) with Kngt Clb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kngt Clb Eqy has no effect on the direction of Knights Of i.e., Knights Of and Kngt Clb go up and down completely randomly.

Pair Corralation between Knights Of and Kngt Clb

Assuming the 90 days horizon Knights Of Columbus is expected to under-perform the Kngt Clb. But the mutual fund apears to be less risky and, when comparing its historical volatility, Knights Of Columbus is 1.64 times less risky than Kngt Clb. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Kngt Clb Eqy is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,227  in Kngt Clb Eqy on December 21, 2024 and sell it today you would earn a total of  118.00  from holding Kngt Clb Eqy or generate 9.62% return on investment over 90 days.

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

Knights Of Columbus  vs.  Kngt Clb Eqy

Knights Of Columbus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Knights Of Columbus has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Knights Of is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kngt Clb Eqy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kngt Clb Eqy are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Kngt Clb may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Knights Of and Kngt Clb

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

The idea behind Knights Of Columbus and Kngt Clb Eqy 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.