Correlation Between Castellum and Kontrol Technologies
Can any of the company-specific risk be diversified away by investing in both Castellum and Kontrol Technologies 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 Castellum and Kontrol Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Kontrol Technologies Corp, you can compare the effects of market volatilities on Castellum and Kontrol Technologies 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 Castellum with a short position of Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Kontrol Technologies.
Diversification Opportunities for Castellum and Kontrol Technologies
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Castellum and Kontrol is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp and Castellum 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 Castellum are associated (or correlated) with Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Castellum i.e., Castellum and Kontrol Technologies go up and down completely randomly.
Pair Corralation between Castellum and Kontrol Technologies
Considering the 90-day investment horizon Castellum is expected to generate 1.87 times less return on investment than Kontrol Technologies. But when comparing it to its historical volatility, Castellum is 1.26 times less risky than Kontrol Technologies. It trades about 0.02 of its potential returns per unit of risk. Kontrol Technologies Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Kontrol Technologies Corp on September 2, 2024 and sell it today you would lose (2.00) from holding Kontrol Technologies Corp or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. Kontrol Technologies Corp
Performance |
| Timeline |
| Castellum |
| Kontrol Technologies Corp |
Castellum and Kontrol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Kontrol Technologies
The main advantage of trading using opposite Castellum and Kontrol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Kontrol Technologies 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 Kontrol Technologies will offset losses from the drop in Kontrol Technologies' long position.| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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