Correlation Between KBL Merger and ITOCHU
Can any of the company-specific risk be diversified away by investing in both KBL Merger and ITOCHU 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 KBL Merger and ITOCHU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBL Merger Corp and ITOCHU, you can compare the effects of market volatilities on KBL Merger and ITOCHU 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 KBL Merger with a short position of ITOCHU. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBL Merger and ITOCHU.
Diversification Opportunities for KBL Merger and ITOCHU
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBL and ITOCHU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBL Merger Corp and ITOCHU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITOCHU and KBL Merger 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 KBL Merger Corp are associated (or correlated) with ITOCHU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITOCHU has no effect on the direction of KBL Merger i.e., KBL Merger and ITOCHU go up and down completely randomly.
Pair Corralation between KBL Merger and ITOCHU
If you would invest 4,394 in ITOCHU on January 25, 2024 and sell it today you would earn a total of 11.00 from holding ITOCHU or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KBL Merger Corp vs. ITOCHU
Performance |
| Timeline |
| KBL Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ITOCHU |
KBL Merger and ITOCHU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBL Merger and ITOCHU
The main advantage of trading using opposite KBL Merger and ITOCHU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBL Merger position performs unexpectedly, ITOCHU 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 ITOCHU will offset losses from the drop in ITOCHU's long position.| KBL Merger vs. Kinetik Holdings | KBL Merger vs. John Wiley Sons | KBL Merger vs. Lincoln Educational Services | KBL Merger vs. Acco Brands |
| ITOCHU vs. Grupo Bimbo SAB | ITOCHU vs. Grupo Financiero Inbursa | ITOCHU vs. Arca Continental SAB | ITOCHU vs. Becle SA de |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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