Correlation Between Kubient and Walkme
Can any of the company-specific risk be diversified away by investing in both Kubient and Walkme 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 Walkme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kubient and Walkme, you can compare the effects of market volatilities on Kubient and Walkme 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 Walkme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kubient and Walkme.
Diversification Opportunities for Kubient and Walkme
Pay attention - limited upside
The 3 months correlation between Kubient and Walkme is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Walkme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walkme 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 Walkme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walkme has no effect on the direction of Kubient i.e., Kubient and Walkme go up and down completely randomly.
Pair Corralation between Kubient and Walkme
If you would invest (100.00) in Walkme on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Walkme or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kubient vs. Walkme
Performance |
| Timeline |
| Kubient |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Walkme |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kubient and Walkme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kubient and Walkme
The main advantage of trading using opposite Kubient and Walkme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kubient position performs unexpectedly, Walkme 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 Walkme will offset losses from the drop in Walkme's long position.The idea behind Kubient and Walkme 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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