Correlation Between Kubient and Alight
Can any of the company-specific risk be diversified away by investing in both Kubient and Alight 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 Kubient and Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kubient and Alight Inc, you can compare the effects of market volatilities on Kubient and Alight 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 Kubient with a short position of Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kubient and Alight.
Diversification Opportunities for Kubient and Alight
Average diversification
The 3 months correlation between Kubient and Alight is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc and Kubient 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 Kubient are associated (or correlated) with Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of Kubient i.e., Kubient and Alight go up and down completely randomly.
Pair Corralation between Kubient and Alight
Given the investment horizon of 90 days Kubient is expected to under-perform the Alight. In addition to that, Kubient is 2.79 times more volatile than Alight Inc. It trades about -0.06 of its total potential returns per unit of risk. Alight Inc is currently generating about 0.0 per unit of volatility. If you would invest 934.00 in Alight Inc on August 27, 2024 and sell it today you would lose (136.00) from holding Alight Inc or give up 14.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 25.71% |
| Values | Daily Returns |
Kubient vs. Alight Inc
Performance |
| Timeline |
| Kubient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alight Inc |
Kubient and Alight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kubient and Alight
The main advantage of trading using opposite Kubient and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kubient position performs unexpectedly, Alight 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 Alight will offset losses from the drop in Alight's long position.The idea behind Kubient and Alight Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |