Correlation Between Kibush Capital and Costco Wholesale

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kibush Capital and Costco Wholesale 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 Kibush Capital and Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kibush Capital Corp and Costco Wholesale Corp, you can compare the effects of market volatilities on Kibush Capital and Costco Wholesale 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 Kibush Capital with a short position of Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kibush Capital and Costco Wholesale.

Diversification Opportunities for Kibush Capital and Costco Wholesale

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Kibush and Costco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kibush Capital Corp and Costco Wholesale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale Corp and Kibush Capital 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 Kibush Capital Corp are associated (or correlated) with Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale Corp has no effect on the direction of Kibush Capital i.e., Kibush Capital and Costco Wholesale go up and down completely randomly.

Pair Corralation between Kibush Capital and Costco Wholesale

If you would invest  0.35  in Kibush Capital Corp on September 5, 2022 and sell it today you would lose (0.32)  from holding Kibush Capital Corp or give up 91.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Kibush Capital Corp  vs.  Costco Wholesale Corp

 Performance (%) 
       Timeline  
Kibush Capital Corp 
Kibush Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Kibush Capital Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Kibush Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Kibush Price Channel

Costco Wholesale Corp 
Costco Performance
0 of 100
Over the last 90 days Costco Wholesale Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Costco Wholesale is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Costco Price Channel

Kibush Capital and Costco Wholesale Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kibush Capital and Costco Wholesale

The main advantage of trading using opposite Kibush Capital and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kibush Capital position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.
Kibush Capital vs. Alcoa Corp
Kibush Capital vs. Dupont De Nemours
Kibush Capital vs. Linde PLC
Kibush Capital vs. Anheuser Busch Inbev
The idea behind Kibush Capital Corp and Costco Wholesale Corp 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.
Costco Wholesale vs. The Andersons
Costco Wholesale vs. Caseys General Stores
Costco Wholesale vs. Companhia Brasileira De
Costco Wholesale vs. The Chefs Warehouse
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go