Correlation Between KBL Merger and Sumitomo
Can any of the company-specific risk be diversified away by investing in both KBL Merger and Sumitomo 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 Sumitomo 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 Sumitomo, you can compare the effects of market volatilities on KBL Merger and Sumitomo 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 Sumitomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBL Merger and Sumitomo.
Diversification Opportunities for KBL Merger and Sumitomo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBL and Sumitomo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBL Merger Corp and Sumitomo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo 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 Sumitomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo has no effect on the direction of KBL Merger i.e., KBL Merger and Sumitomo go up and down completely randomly.
Pair Corralation between KBL Merger and Sumitomo
If you would invest 2,389 in Sumitomo on January 26, 2024 and sell it today you would earn a total of 69.00 from holding Sumitomo or generate 2.89% 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. Sumitomo
Performance |
| Timeline |
| KBL Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sumitomo |
KBL Merger and Sumitomo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBL Merger and Sumitomo
The main advantage of trading using opposite KBL Merger and Sumitomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBL Merger position performs unexpectedly, Sumitomo 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 Sumitomo will offset losses from the drop in Sumitomo'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 |
| Sumitomo vs. Grupo Bimbo SAB | Sumitomo vs. Grupo Financiero Inbursa | Sumitomo vs. Arca Continental SAB | Sumitomo 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |