Correlation Between Aurubis AG and Kemper
Can any of the company-specific risk be diversified away by investing in both Aurubis AG and Kemper 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 Aurubis AG and Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurubis AG and Kemper, you can compare the effects of market volatilities on Aurubis AG and Kemper 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 Aurubis AG with a short position of Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis AG and Kemper.
Diversification Opportunities for Aurubis AG and Kemper
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurubis and Kemper is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis AG and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper and Aurubis AG 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 Aurubis AG are associated (or correlated) with Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of Aurubis AG i.e., Aurubis AG and Kemper go up and down completely randomly.
Pair Corralation between Aurubis AG and Kemper
If you would invest 4,306 in Kemper on October 2, 2024 and sell it today you would earn a total of 1,844 from holding Kemper or generate 42.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.0% |
Values | Daily Returns |
Aurubis AG vs. Kemper
Performance |
Timeline |
Aurubis AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Kemper |
Aurubis AG and Kemper Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurubis AG and Kemper
The main advantage of trading using opposite Aurubis AG and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis AG position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.Aurubis AG vs. Taylor Morrison Home | Aurubis AG vs. INVITATION HOMES DL | Aurubis AG vs. Haier Smart Home | Aurubis AG vs. Corporate Office Properties |
Kemper vs. TT Electronics PLC | Kemper vs. USWE SPORTS AB | Kemper vs. Benchmark Electronics | Kemper vs. Columbia Sportswear |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |