Correlation Between IMine and KKR Acquisition
Can any of the company-specific risk be diversified away by investing in both IMine and KKR Acquisition 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 IMine and KKR Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMine and KKR Acquisition Holdings, you can compare the effects of market volatilities on IMine and KKR Acquisition 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 IMine with a short position of KKR Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMine and KKR Acquisition.
Diversification Opportunities for IMine and KKR Acquisition
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMine and KKR is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding IMine and KKR Acquisition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Acquisition Holdings and IMine 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 IMine are associated (or correlated) with KKR Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Acquisition Holdings has no effect on the direction of IMine i.e., IMine and KKR Acquisition go up and down completely randomly.
Pair Corralation between IMine and KKR Acquisition
Given the investment horizon of 90 days IMine is expected to generate 462.29 times more return on investment than KKR Acquisition. However, IMine is 462.29 times more volatile than KKR Acquisition Holdings. It trades about 0.05 of its potential returns per unit of risk. KKR Acquisition Holdings is currently generating about 0.1 per unit of risk. If you would invest 3.50 in IMine on January 24, 2024 and sell it today you would earn a total of 116.50 from holding IMine or generate 3328.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 61.25% |
Values | Daily Returns |
IMine vs. KKR Acquisition Holdings
Performance |
Timeline |
IMine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KKR Acquisition Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IMine and KKR Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IMine and KKR Acquisition
The main advantage of trading using opposite IMine and KKR Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMine position performs unexpectedly, KKR Acquisition 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 KKR Acquisition will offset losses from the drop in KKR Acquisition's long position.IMine vs. Simulated Environmen | IMine vs. CLST Holdings | IMine vs. Premier Products Group | IMine vs. Coastal Capital Acq |
KKR Acquisition vs. American Environmental | KKR Acquisition vs. Shake Shack | KKR Acquisition vs. Dominos Pizza | KKR Acquisition vs. Insteel Industries |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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