Correlation Between Smurfit Kappa and Smurfit Kappa

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

By analyzing existing cross correlation between Smurfit Kappa Group and Smurfit Kappa Group, you can compare the effects of market volatilities on Smurfit Kappa and Smurfit Kappa 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 Smurfit Kappa with a short position of Smurfit Kappa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and Smurfit Kappa.

Diversification Opportunities for Smurfit Kappa and Smurfit Kappa

0.0

Correlation Coefficient

Smurfit Kappa  Smurfit Kappa

Pay attention - limited upside

The 3 months correlation between Smurfit and Smurfit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and Smurfit Kappa Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smurfit Kappa Group and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with Smurfit Kappa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smurfit Kappa Group has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and Smurfit Kappa go up and down completely randomly.

Pair Corralation between Smurfit Kappa and Smurfit Kappa

If you would invest  5,316  in Smurfit Kappa Group on November 19, 2024 and sell it today you would earn a total of  149.00  from holding Smurfit Kappa Group or generate 2.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Smurfit Kappa Group  vs.  Smurfit Kappa Group

Smurfit Kappa Group

Risk-Adjusted Performance

Weak

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

Smurfit Kappa Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Smurfit Kappa Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Smurfit Kappa is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Smurfit Kappa and Smurfit Kappa

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

The idea behind Smurfit Kappa Group and Smurfit Kappa Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.