Correlation Between Kasten and Awaysis Capital
Can any of the company-specific risk be diversified away by investing in both Kasten and Awaysis Capital 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 Kasten and Awaysis Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasten Inc and Awaysis Capital, you can compare the effects of market volatilities on Kasten and Awaysis Capital 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 Kasten with a short position of Awaysis Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasten and Awaysis Capital.
Diversification Opportunities for Kasten and Awaysis Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasten and Awaysis is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kasten Inc and Awaysis Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awaysis Capital and Kasten 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 Kasten Inc are associated (or correlated) with Awaysis Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awaysis Capital has no effect on the direction of Kasten i.e., Kasten and Awaysis Capital go up and down completely randomly.
Pair Corralation between Kasten and Awaysis Capital
Given the investment horizon of 90 days Kasten is expected to generate 4.22 times less return on investment than Awaysis Capital. But when comparing it to its historical volatility, Kasten Inc is 1.25 times less risky than Awaysis Capital. It trades about 0.01 of its potential returns per unit of risk. Awaysis Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Awaysis Capital on September 1, 2024 and sell it today you would lose (91.00) from holding Awaysis Capital or give up 65.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasten Inc vs. Awaysis Capital
Performance |
| Timeline |
| Kasten Inc |
| Awaysis Capital |
Kasten and Awaysis Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasten and Awaysis Capital
The main advantage of trading using opposite Kasten and Awaysis Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasten position performs unexpectedly, Awaysis Capital 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 Awaysis Capital will offset losses from the drop in Awaysis Capital's long position.| Kasten vs. Interups | Kasten vs. Church Crawford | Kasten vs. Active Health Foods | Kasten vs. Gold Ent Group |
| Awaysis Capital vs. Magna International | Awaysis Capital vs. Zedge Inc | Awaysis Capital vs. Integral Ad Science | Awaysis Capital vs. Weibo Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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