Correlation Between Kaufman Broad and Computer
Can any of the company-specific risk be diversified away by investing in both Kaufman Broad and Computer 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 Kaufman Broad and Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Broad SA and Computer And Technologies, you can compare the effects of market volatilities on Kaufman Broad and Computer 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 Kaufman Broad with a short position of Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and Computer.
Diversification Opportunities for Kaufman Broad and Computer
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kaufman and Computer is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies and Kaufman Broad 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 Kaufman Broad SA are associated (or correlated) with Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Kaufman Broad i.e., Kaufman Broad and Computer go up and down completely randomly.
Pair Corralation between Kaufman Broad and Computer
Assuming the 90 days horizon Kaufman Broad SA is expected to under-perform the Computer. But the stock apears to be less risky and, when comparing its historical volatility, Kaufman Broad SA is 1.41 times less risky than Computer. The stock trades about -0.09 of its potential returns per unit of risk. The Computer And Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Computer And Technologies on July 17, 2025 and sell it today you would earn a total of 1.00 from holding Computer And Technologies or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Broad SA vs. Computer And Technologies
Performance |
| Timeline |
| Kaufman Broad SA |
| Computer And Technologies |
Kaufman Broad and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Broad and Computer
The main advantage of trading using opposite Kaufman Broad and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| Kaufman Broad vs. FORMPIPE SOFTWARE AB | Kaufman Broad vs. BII Railway Transportation | Kaufman Broad vs. Constellation Software | Kaufman Broad vs. CyberArk Software |
| Computer vs. MeVis Medical Solutions | Computer vs. NXP Semiconductors NV | Computer vs. Semiconductor Manufacturing International | Computer vs. Diamyd Medical AB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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