Correlation Between Kidoz and Magnite
Can any of the company-specific risk be diversified away by investing in both Kidoz and Magnite 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 Kidoz and Magnite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kidoz Inc and Magnite, you can compare the effects of market volatilities on Kidoz and Magnite 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 Kidoz with a short position of Magnite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidoz and Magnite.
Diversification Opportunities for Kidoz and Magnite
Modest diversification
The 3 months correlation between Kidoz and Magnite is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kidoz Inc and Magnite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnite and Kidoz 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 Kidoz Inc are associated (or correlated) with Magnite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnite has no effect on the direction of Kidoz i.e., Kidoz and Magnite go up and down completely randomly.
Pair Corralation between Kidoz and Magnite
Assuming the 90 days horizon Kidoz Inc is expected to generate 18.69 times more return on investment than Magnite. However, Kidoz is 18.69 times more volatile than Magnite. It trades about 0.14 of its potential returns per unit of risk. Magnite is currently generating about 0.08 per unit of risk. If you would invest 11.00 in Kidoz Inc on September 13, 2024 and sell it today you would lose (1.00) from holding Kidoz Inc or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kidoz Inc vs. Magnite
Performance |
| Timeline |
| Kidoz Inc |
| Magnite |
Kidoz and Magnite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidoz and Magnite
The main advantage of trading using opposite Kidoz and Magnite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidoz position performs unexpectedly, Magnite 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 Magnite will offset losses from the drop in Magnite's long position.| Kidoz vs. INEO Tech Corp | Kidoz vs. Marchex | Kidoz vs. Snipp Interactive | Kidoz vs. Mirriad Advertising plc |
| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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