Correlation Between KASPIKZ 1 and ADYEN NV
Can any of the company-specific risk be diversified away by investing in both KASPIKZ 1 and ADYEN NV 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 KASPIKZ 1 and ADYEN NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KASPIKZ 1 and ADYEN NV UNSPADR001, you can compare the effects of market volatilities on KASPIKZ 1 and ADYEN NV 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 KASPIKZ 1 with a short position of ADYEN NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of KASPIKZ 1 and ADYEN NV.
Diversification Opportunities for KASPIKZ 1 and ADYEN NV
Good diversification
The 3 months correlation between KASPIKZ and ADYEN is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding KASPIKZ 1 and ADYEN NV UNSPADR001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADYEN NV UNSPADR001 and KASPIKZ 1 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 KASPIKZ 1 are associated (or correlated) with ADYEN NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADYEN NV UNSPADR001 has no effect on the direction of KASPIKZ 1 i.e., KASPIKZ 1 and ADYEN NV go up and down completely randomly.
Pair Corralation between KASPIKZ 1 and ADYEN NV
Assuming the 90 days horizon KASPIKZ 1 is expected to generate 27.13 times less return on investment than ADYEN NV. But when comparing it to its historical volatility, KASPIKZ 1 is 1.67 times less risky than ADYEN NV. It trades about 0.01 of its potential returns per unit of risk. ADYEN NV UNSPADR001 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,320 in ADYEN NV UNSPADR001 on April 22, 2025 and sell it today you would earn a total of 190.00 from holding ADYEN NV UNSPADR001 or generate 14.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KASPIKZ 1 vs. ADYEN NV UNSPADR001
Performance |
Timeline |
KASPIKZ 1 |
ADYEN NV UNSPADR001 |
KASPIKZ 1 and ADYEN NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KASPIKZ 1 and ADYEN NV
The main advantage of trading using opposite KASPIKZ 1 and ADYEN NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KASPIKZ 1 position performs unexpectedly, ADYEN NV 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 ADYEN NV will offset losses from the drop in ADYEN NV's long position.KASPIKZ 1 vs. PagSeguro Digital | KASPIKZ 1 vs. Sibanye Stillwater Limited | KASPIKZ 1 vs. Impala Platinum Holdings | KASPIKZ 1 vs. Cellink AB |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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