Correlation Between AdvisorShares Ranger and KBK Capital
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Ranger 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 AdvisorShares Ranger and KBK Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Ranger Equity and KBK Capital Trust, you can compare the effects of market volatilities on AdvisorShares Ranger 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 AdvisorShares Ranger with a short position of KBK Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Ranger and KBK Capital.
Diversification Opportunities for AdvisorShares Ranger and KBK Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AdvisorShares and KBK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Ranger Equity 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 AdvisorShares Ranger 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 AdvisorShares Ranger Equity 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 AdvisorShares Ranger i.e., AdvisorShares Ranger and KBK Capital go up and down completely randomly.
Pair Corralation between AdvisorShares Ranger and KBK Capital
If you would invest 2,051 in AdvisorShares Ranger Equity on January 19, 2024 and sell it today you would earn a total of 96.00 from holding AdvisorShares Ranger Equity or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
AdvisorShares Ranger Equity vs. KBK Capital Trust
Performance |
| Timeline |
| AdvisorShares Ranger |
| KBK Capital Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AdvisorShares Ranger and KBK Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Ranger and KBK Capital
The main advantage of trading using opposite AdvisorShares Ranger and KBK Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Ranger 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.| AdvisorShares Ranger vs. ProShares Short Russell2000 | AdvisorShares Ranger vs. AdvisorShares Dorsey Wright | AdvisorShares Ranger vs. ProShares Short MSCI | AdvisorShares Ranger vs. ProShares Short Dow30 |
| KBK Capital vs. Kingdee International Software | KBK Capital vs. Kaltura | KBK Capital vs. Cedar Realty Trust | KBK Capital vs. Grocery Outlet Holding |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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