Correlation Between Comet Holding and Kardex

Can any of the company-specific risk be diversified away by investing in both Comet Holding and Kardex 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 Comet Holding and Kardex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comet Holding AG and Kardex, you can compare the effects of market volatilities on Comet Holding and Kardex 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 Comet Holding with a short position of Kardex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comet Holding and Kardex.

Diversification Opportunities for Comet Holding and Kardex

0.92

Correlation Coefficient

Comet Holding  Kardex

Almost no diversification

The 3 months correlation between Comet and Kardex is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and Kardex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardex and Comet Holding 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 Comet Holding AG are associated (or correlated) with Kardex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardex has no effect on the direction of Comet Holding i.e., Comet Holding and Kardex go up and down completely randomly.

Pair Corralation between Comet Holding and Kardex

Assuming the 90 days trading horizon Comet Holding is expected to generate 1.41 times less return on investment than Kardex. In addition to that, Comet Holding is 1.25 times more volatile than Kardex. It trades about 0.29 of its total potential returns per unit of risk. Kardex is currently generating about 0.51 per unit of volatility. If you would invest  18,677  in Kardex on April 22, 2025 and sell it today you would earn a total of  11,873  from holding Kardex or generate 63.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Comet Holding AG  vs.  Kardex

Comet Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Comet Holding AG are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Comet Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Kardex

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Kardex are ranked lower than 40 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kardex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comet Holding and Kardex

The main advantage of trading using opposite Comet Holding and Kardex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comet Holding position performs unexpectedly, Kardex 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 Kardex will offset losses from the drop in Kardex's long position.

The idea behind Comet Holding AG and Kardex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.