Correlation Between Kairous Acquisition and Lucid
Can any of the company-specific risk be diversified away by investing in both Kairous Acquisition and Lucid 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 Kairous Acquisition and Lucid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kairous Acquisition Corp and Lucid Group, you can compare the effects of market volatilities on Kairous Acquisition and Lucid 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 Kairous Acquisition with a short position of Lucid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kairous Acquisition and Lucid.
Diversification Opportunities for Kairous Acquisition and Lucid
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kairous and Lucid is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kairous Acquisition Corp and Lucid Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Group and Kairous Acquisition 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 Kairous Acquisition Corp are associated (or correlated) with Lucid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Group has no effect on the direction of Kairous Acquisition i.e., Kairous Acquisition and Lucid go up and down completely randomly.
Pair Corralation between Kairous Acquisition and Lucid
If you would invest 1,221 in Kairous Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Kairous Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kairous Acquisition Corp vs. Lucid Group
Performance |
| Timeline |
| Kairous Acquisition Corp |
| Lucid Group |
Kairous Acquisition and Lucid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kairous Acquisition and Lucid
The main advantage of trading using opposite Kairous Acquisition and Lucid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kairous Acquisition position performs unexpectedly, Lucid 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 Lucid will offset losses from the drop in Lucid's long position.| Kairous Acquisition vs. Lucid Group | Kairous Acquisition vs. Li Auto | Kairous Acquisition vs. Cars Inc | Kairous Acquisition vs. Boston Beer |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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