Correlation Between Kardex and EFG International

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

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

Diversification Opportunities for Kardex and EFG International

0.0

Correlation Coefficient

Kardex  EFG International

Pay attention - limited upside

The 3 months correlation between Kardex and EFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kardex and EFG International AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFG International and Kardex 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 Kardex are associated (or correlated) with EFG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFG International has no effect on the direction of Kardex i.e., Kardex and EFG International go up and down completely randomly.

Pair Corralation between Kardex and EFG International

If you would invest  1,176  in EFG International AG on April 23, 2025 and sell it today you would earn a total of  432.00  from holding EFG International AG or generate 36.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kardex  vs.  EFG International AG

Kardex

Risk-Adjusted Performance

Very Strong

Over the last 90 days Kardex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kardex is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

EFG International

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in EFG International AG are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EFG International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kardex and EFG International

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

The idea behind Kardex and EFG International AG 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.