Correlation Between Goeasy and Kinaxis
Can any of the company-specific risk be diversified away by investing in both Goeasy and Kinaxis 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 Goeasy and Kinaxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between goeasy and Kinaxis, you can compare the effects of market volatilities on Goeasy and Kinaxis 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 Goeasy with a short position of Kinaxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goeasy and Kinaxis.
Diversification Opportunities for Goeasy and Kinaxis
Very good diversification
The 3 months correlation between Goeasy and Kinaxis is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding goeasy and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Goeasy 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 goeasy are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Goeasy i.e., Goeasy and Kinaxis go up and down completely randomly.
Pair Corralation between Goeasy and Kinaxis
Assuming the 90 days trading horizon goeasy is expected to generate 1.38 times more return on investment than Kinaxis. However, Goeasy is 1.38 times more volatile than Kinaxis. It trades about 0.15 of its potential returns per unit of risk. Kinaxis is currently generating about -0.11 per unit of risk. If you would invest 16,716 in goeasy on November 3, 2024 and sell it today you would earn a total of 977.00 from holding goeasy or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
goeasy vs. Kinaxis
Performance |
| Timeline |
| goeasy |
| Kinaxis |
Goeasy and Kinaxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goeasy and Kinaxis
The main advantage of trading using opposite Goeasy and Kinaxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goeasy position performs unexpectedly, Kinaxis 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 Kinaxis will offset losses from the drop in Kinaxis' long position.| Goeasy vs. Bird Construction | Goeasy vs. T2 Metals Corp | Goeasy vs. Brookfield Office Properties | Goeasy vs. Advent Wireless |
| Kinaxis vs. Open Text Corp | Kinaxis vs. Enghouse Systems | Kinaxis vs. Docebo Inc | Kinaxis vs. Descartes Systems Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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