Correlation Between NYSE Composite and KS AG
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and KS AG 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 NYSE Composite and KS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and KS AG DRC, you can compare the effects of market volatilities on NYSE Composite and KS AG 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 NYSE Composite with a short position of KS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and KS AG.
Diversification Opportunities for NYSE Composite and KS AG
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and KPLUY is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and KS AG DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KS AG DRC and NYSE Composite 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 NYSE Composite are associated (or correlated) with KS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KS AG DRC has no effect on the direction of NYSE Composite i.e., NYSE Composite and KS AG go up and down completely randomly.
Pair Corralation between NYSE Composite and KS AG
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the KS AG. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 4.64 times less risky than KS AG. The index trades about -0.05 of its potential returns per unit of risk. The KS AG DRC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 701.00 in KS AG DRC on December 1, 2024 and sell it today you would lose (6.00) from holding KS AG DRC or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
NYSE Composite vs. KS AG DRC
Performance |
Timeline |
NYSE Composite and KS AG Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
KS AG DRC
Pair trading matchups for KS AG
Pair Trading with NYSE Composite and KS AG
The main advantage of trading using opposite NYSE Composite and KS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, KS AG 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 KS AG will offset losses from the drop in KS AG's long position.NYSE Composite vs. Intuitive Surgical | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Idaho Strategic Resources | NYSE Composite vs. Femasys |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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