Correlation Between Knights Of and Knights Of

Can any of the company-specific risk be diversified away by investing in both Knights Of and Knights Of 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 Knights Of 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 Knights Of Umbus, you can compare the effects of market volatilities on Knights Of and Knights Of 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 Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knights Of and Knights Of.

Diversification Opportunities for Knights Of and Knights Of

-0.06

Correlation Coefficient

Knights Of  Knights Of

Good diversification

The 3 months correlation between Knights and Knights is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Knights Of Columbus and Knights Of Umbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Umbus 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 Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Umbus has no effect on the direction of Knights Of i.e., Knights Of and Knights Of go up and down completely randomly.

Pair Corralation between Knights Of and Knights Of

Assuming the 90 days horizon Knights Of Columbus is expected to under-perform the Knights Of. But the mutual fund apears to be less risky and, when comparing its historical volatility, Knights Of Columbus is 1.65 times less risky than Knights Of. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Knights Of Umbus is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,224  in Knights Of Umbus on December 22, 2024 and sell it today you would earn a total of  109.00  from holding Knights Of Umbus or generate 8.91% return on investment over 90 days.

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

Knights Of Columbus  vs.  Knights Of Umbus

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.

Knights Of Umbus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Knights Of Umbus are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Knights Of may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Knights Of and Knights Of

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

The idea behind Knights Of Columbus and Knights Of Umbus 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.