Correlation Between WB Burgers and KAT Exploration
Can any of the company-specific risk be diversified away by investing in both WB Burgers and KAT Exploration 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 WB Burgers and KAT Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WB Burgers Asia and KAT Exploration, you can compare the effects of market volatilities on WB Burgers and KAT Exploration 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 WB Burgers with a short position of KAT Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of WB Burgers and KAT Exploration.
Diversification Opportunities for WB Burgers and KAT Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WBBA and KAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WB Burgers Asia and KAT Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAT Exploration and WB Burgers 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 WB Burgers Asia are associated (or correlated) with KAT Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAT Exploration has no effect on the direction of WB Burgers i.e., WB Burgers and KAT Exploration go up and down completely randomly.
Pair Corralation between WB Burgers and KAT Exploration
If you would invest 0.12 in KAT Exploration on December 5, 2024 and sell it today you would lose (0.08) from holding KAT Exploration or give up 66.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
WB Burgers Asia vs. KAT Exploration
Performance |
Timeline |
WB Burgers Asia |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KAT Exploration |
WB Burgers and KAT Exploration Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WB Burgers and KAT Exploration
The main advantage of trading using opposite WB Burgers and KAT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WB Burgers position performs unexpectedly, KAT Exploration 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 KAT Exploration will offset losses from the drop in KAT Exploration's long position.WB Burgers vs. Oncologix Tech | WB Burgers vs. Blockchain Industries | WB Burgers vs. TransAKT | WB Burgers vs. China Health Management |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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