Correlation Between Westag Getalit and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Westag Getalit and KENEDIX OFFICE 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 Westag Getalit and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westag Getalit AG and KENEDIX OFFICE INV, you can compare the effects of market volatilities on Westag Getalit and KENEDIX OFFICE 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 Westag Getalit with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westag Getalit and KENEDIX OFFICE.
Diversification Opportunities for Westag Getalit and KENEDIX OFFICE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Westag and KENEDIX is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Westag Getalit AG and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and Westag Getalit 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 Westag Getalit AG are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Westag Getalit i.e., Westag Getalit and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Westag Getalit and KENEDIX OFFICE
Assuming the 90 days trading horizon Westag Getalit AG is expected to generate 3.29 times more return on investment than KENEDIX OFFICE. However, Westag Getalit is 3.29 times more volatile than KENEDIX OFFICE INV. It trades about 0.03 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about -0.23 per unit of risk. If you would invest 2,400 in Westag Getalit AG on September 25, 2024 and sell it today you would earn a total of 20.00 from holding Westag Getalit AG or generate 0.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Westag Getalit AG vs. KENEDIX OFFICE INV
Performance |
Timeline |
Westag Getalit AG |
KENEDIX OFFICE INV |
Westag Getalit and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Westag Getalit and KENEDIX OFFICE
The main advantage of trading using opposite Westag Getalit and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westag Getalit position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.Westag Getalit vs. KENEDIX OFFICE INV | Westag Getalit vs. Southwest Airlines Co | Westag Getalit vs. Sabra Health Care | Westag Getalit vs. EPSILON HEALTHCARE LTD |
KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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