Correlation Between Kinnevik Investment and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Goodbye Kansas 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 Kinnevik Investment and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Kinnevik Investment and Goodbye Kansas 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 Kinnevik Investment with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Goodbye Kansas.
Diversification Opportunities for Kinnevik Investment and Goodbye Kansas
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinnevik and Goodbye is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Goodbye Kansas
Assuming the 90 days trading horizon Kinnevik Investment is expected to generate 2.54 times less return on investment than Goodbye Kansas. But when comparing it to its historical volatility, Kinnevik Investment AB is 2.72 times less risky than Goodbye Kansas. It trades about 0.08 of its potential returns per unit of risk. Goodbye Kansas Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Goodbye Kansas Group on October 20, 2024 and sell it today you would earn a total of 27.00 from holding Goodbye Kansas Group or generate 18.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Kinnevik Investment AB vs. Goodbye Kansas Group
Performance |
Timeline |
Kinnevik Investment |
Goodbye Kansas Group |
Kinnevik Investment and Goodbye Kansas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinnevik Investment and Goodbye Kansas
The main advantage of trading using opposite Kinnevik Investment and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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