Correlation Between Kubient and Kaspien Holdings
Can any of the company-specific risk be diversified away by investing in both Kubient and Kaspien Holdings 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 Kaspien Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kubient and Kaspien Holdings, you can compare the effects of market volatilities on Kubient and Kaspien Holdings 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 Kaspien Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kubient and Kaspien Holdings.
Diversification Opportunities for Kubient and Kaspien Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kubient and Kaspien is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien Holdings 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 Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of Kubient i.e., Kubient and Kaspien Holdings go up and down completely randomly.
Pair Corralation between Kubient and Kaspien Holdings
If you would invest 25.00 in Kaspien Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Kaspien Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kubient vs. Kaspien Holdings
Performance |
| Timeline |
| Kubient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kubient and Kaspien Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kubient and Kaspien Holdings
The main advantage of trading using opposite Kubient and Kaspien Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kubient position performs unexpectedly, Kaspien Holdings 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 Kaspien Holdings will offset losses from the drop in Kaspien Holdings' long position.The idea behind Kubient and Kaspien Holdings 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.| Kaspien Holdings vs. Quoin Pharmaceuticals Ltd | Kaspien Holdings vs. Intelligent Living Application | Kaspien Holdings vs. Revelation Biosciences | Kaspien Holdings vs. Virax Biolabs 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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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