Correlation Between Friendable and KwikClick
Can any of the company-specific risk be diversified away by investing in both Friendable and KwikClick 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 Friendable and KwikClick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Friendable and KwikClick, you can compare the effects of market volatilities on Friendable and KwikClick 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 Friendable with a short position of KwikClick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Friendable and KwikClick.
Diversification Opportunities for Friendable and KwikClick
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Friendable and KwikClick is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Friendable and KwikClick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KwikClick and Friendable 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 Friendable are associated (or correlated) with KwikClick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KwikClick has no effect on the direction of Friendable i.e., Friendable and KwikClick go up and down completely randomly.
Pair Corralation between Friendable and KwikClick
Given the investment horizon of 90 days Friendable is expected to generate 1.56 times less return on investment than KwikClick. But when comparing it to its historical volatility, Friendable is 2.06 times less risky than KwikClick. It trades about 0.03 of its potential returns per unit of risk. KwikClick is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 50.00 in KwikClick on August 25, 2024 and sell it today you would lose (41.48) from holding KwikClick or give up 82.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Friendable vs. KwikClick
Performance |
| Timeline |
| Friendable |
| KwikClick |
Friendable and KwikClick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Friendable and KwikClick
The main advantage of trading using opposite Friendable and KwikClick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Friendable position performs unexpectedly, KwikClick 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 KwikClick will offset losses from the drop in KwikClick's long position.| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |