Correlation Between Kubient and Global Business
Can any of the company-specific risk be diversified away by investing in both Kubient and Global Business 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 Global Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kubient and Global Business Travel, you can compare the effects of market volatilities on Kubient and Global Business 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 Global Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kubient and Global Business.
Diversification Opportunities for Kubient and Global Business
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kubient and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Global Business Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Business Travel 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 Global Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Business Travel has no effect on the direction of Kubient i.e., Kubient and Global Business go up and down completely randomly.
Pair Corralation between Kubient and Global Business
If you would invest 768.00 in Global Business Travel on August 27, 2024 and sell it today you would earn a total of 176.00 from holding Global Business Travel or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kubient vs. Global Business Travel
Performance |
| Timeline |
| Kubient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Business Travel |
Kubient and Global Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kubient and Global Business
The main advantage of trading using opposite Kubient and Global Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kubient position performs unexpectedly, Global Business 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 Global Business will offset losses from the drop in Global Business' long position.The idea behind Kubient and Global Business Travel 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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