Correlation Between KOWORLD AG and CRAWFORD +

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

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

Diversification Opportunities for KOWORLD AG and CRAWFORD +

-0.01

Correlation Coefficient

KOWORLD AG  CRAWFORD +

Good diversification

The 3 months correlation between KOWORLD and CRAWFORD is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding KOWORLD AG and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and KOWORLD AG 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 KOWORLD AG are associated (or correlated) with CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of KOWORLD AG i.e., KOWORLD AG and CRAWFORD + go up and down completely randomly.

Pair Corralation between KOWORLD AG and CRAWFORD +

Assuming the 90 days trading horizon KOWORLD AG is expected to generate 0.86 times more return on investment than CRAWFORD +. However, KOWORLD AG is 1.16 times less risky than CRAWFORD +. It trades about 0.13 of its potential returns per unit of risk. CRAWFORD A NV is currently generating about 0.05 per unit of risk. If you would invest  2,624  in KOWORLD AG on April 22, 2025 and sell it today you would earn a total of  406.00  from holding KOWORLD AG or generate 15.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KOWORLD AG  vs.  CRAWFORD A NV

KOWORLD AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KOWORLD AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KOWORLD AG reported solid returns over the last few months and may actually be approaching a breakup point.

CRAWFORD A NV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CRAWFORD A NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, CRAWFORD + may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with KOWORLD AG and CRAWFORD +

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

The idea behind KOWORLD AG and CRAWFORD A NV 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 Transaction History module to view history of all your transactions and understand their impact on performance.