Correlation Between Costco Wholesale and KBK Capital
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale and KBK Capital 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 Costco Wholesale and KBK Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale Corp and KBK Capital Trust, you can compare the effects of market volatilities on Costco Wholesale and KBK Capital 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 Costco Wholesale with a short position of KBK Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and KBK Capital.
Diversification Opportunities for Costco Wholesale and KBK Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Costco and KBK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale Corp and KBK Capital Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBK Capital Trust and Costco Wholesale 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 Costco Wholesale Corp are associated (or correlated) with KBK Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBK Capital Trust has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and KBK Capital go up and down completely randomly.
Pair Corralation between Costco Wholesale and KBK Capital
If you would invest (100.00) in KBK Capital Trust on January 26, 2024 and sell it today you would earn a total of 100.00 from holding KBK Capital Trust or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Costco Wholesale Corp vs. KBK Capital Trust
Performance |
| Timeline |
| Costco Wholesale Corp |
| KBK Capital Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Costco Wholesale and KBK Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costco Wholesale and KBK Capital
The main advantage of trading using opposite Costco Wholesale and KBK Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, KBK Capital 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 KBK Capital will offset losses from the drop in KBK Capital's long position.| Costco Wholesale vs. Walmart | Costco Wholesale vs. Dollar Tree | Costco Wholesale vs. BJs Wholesale Club | Costco Wholesale vs. Big Lots |
| KBK Capital vs. Golden Energy Offshore | KBK Capital vs. Pentair PLC | KBK Capital vs. Live Ventures | KBK Capital vs. Wizz Air Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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