Correlation Between KASPIKZ (SPGDR and SILEON AB

Can any of the company-specific risk be diversified away by investing in both KASPIKZ (SPGDR and SILEON AB 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 KASPIKZ (SPGDR and SILEON AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KASPIKZ 1 and SILEON AB ON, you can compare the effects of market volatilities on KASPIKZ (SPGDR and SILEON AB 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 KASPIKZ (SPGDR with a short position of SILEON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of KASPIKZ (SPGDR and SILEON AB.

Diversification Opportunities for KASPIKZ (SPGDR and SILEON AB

0.18

Correlation Coefficient

KASPIKZ (SPGDR  SILEON AB

Average diversification

The 3 months correlation between KASPIKZ and SILEON is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding KASPIKZ 1 and SILEON AB ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SILEON AB ON and KASPIKZ (SPGDR 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 KASPIKZ 1 are associated (or correlated) with SILEON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SILEON AB ON has no effect on the direction of KASPIKZ (SPGDR i.e., KASPIKZ (SPGDR and SILEON AB go up and down completely randomly.

Pair Corralation between KASPIKZ (SPGDR and SILEON AB

Assuming the 90 days horizon KASPIKZ 1 is expected to generate 0.35 times more return on investment than SILEON AB. However, KASPIKZ 1 is 2.88 times less risky than SILEON AB. It trades about -0.18 of its potential returns per unit of risk. SILEON AB ON is currently generating about -0.56 per unit of risk. If you would invest  10,200  in KASPIKZ 1 on October 6, 2024 and sell it today you would lose (600.00) from holding KASPIKZ 1 or give up 5.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

KASPIKZ 1  vs.  SILEON AB ON

KASPIKZ (SPGDR

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KASPIKZ 1 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, KASPIKZ (SPGDR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SILEON AB ON

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days SILEON AB ON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, SILEON AB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KASPIKZ (SPGDR and SILEON AB

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

The idea behind KASPIKZ 1 and SILEON AB ON 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.