Correlation Between KBK Capital and Amazon
Can any of the company-specific risk be diversified away by investing in both KBK Capital and Amazon 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 KBK Capital and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBK Capital Trust and Amazon Inc, you can compare the effects of market volatilities on KBK Capital and Amazon 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 KBK Capital with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBK Capital and Amazon.
Diversification Opportunities for KBK Capital and Amazon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBK and Amazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBK Capital Trust and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and KBK Capital 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 KBK Capital Trust are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of KBK Capital i.e., KBK Capital and Amazon go up and down completely randomly.
Pair Corralation between KBK Capital and Amazon
If you would invest (100.00) in KBK Capital Trust on January 20, 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 |
KBK Capital Trust vs. Amazon Inc
Performance |
| Timeline |
| KBK Capital Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amazon Inc |
KBK Capital and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBK Capital and Amazon
The main advantage of trading using opposite KBK Capital and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBK Capital position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| KBK Capital vs. Portillos | KBK Capital vs. Nok Airlines Public | KBK Capital vs. Air Transport Services | KBK Capital vs. Allegiant Travel |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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