Correlation Between KTBST Mixed and Ally Leasehold

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

By analyzing existing cross correlation between KTBST Mixed Leasehold and Ally Leasehold Real, you can compare the effects of market volatilities on KTBST Mixed and Ally Leasehold 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 KTBST Mixed with a short position of Ally Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTBST Mixed and Ally Leasehold.

Diversification Opportunities for KTBST Mixed and Ally Leasehold

0.35

Correlation Coefficient

KTBST Mixed  Ally Leasehold

Weak diversification

The 3 months correlation between KTBST and Ally is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding KTBST Mixed Leasehold and Ally Leasehold Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Leasehold Real and KTBST Mixed 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 KTBST Mixed Leasehold are associated (or correlated) with Ally Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Leasehold Real has no effect on the direction of KTBST Mixed i.e., KTBST Mixed and Ally Leasehold go up and down completely randomly.

Pair Corralation between KTBST Mixed and Ally Leasehold

Assuming the 90 days trading horizon KTBST Mixed Leasehold is expected to under-perform the Ally Leasehold. But the stock apears to be less risky and, when comparing its historical volatility, KTBST Mixed Leasehold is 1.48 times less risky than Ally Leasehold. The stock trades about 0.0 of its potential returns per unit of risk. The Ally Leasehold Real is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  454.00  in Ally Leasehold Real on September 15, 2024 and sell it today you would earn a total of  91.00  from holding Ally Leasehold Real or generate 20.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

KTBST Mixed Leasehold  vs.  Ally Leasehold Real

KTBST Mixed Leasehold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTBST Mixed Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, KTBST Mixed is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Ally Leasehold Real

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ally Leasehold Real are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Ally Leasehold disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KTBST Mixed and Ally Leasehold

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

The idea behind KTBST Mixed Leasehold and Ally Leasehold Real 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.