Correlation Between Kontrol Technologies and Xalles Holdings
Can any of the company-specific risk be diversified away by investing in both Kontrol Technologies and Xalles 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 Kontrol Technologies and Xalles Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontrol Technologies Corp and Xalles Holdings, you can compare the effects of market volatilities on Kontrol Technologies and Xalles 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 Kontrol Technologies with a short position of Xalles Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrol Technologies and Xalles Holdings.
Diversification Opportunities for Kontrol Technologies and Xalles Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontrol and Xalles is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kontrol Technologies Corp and Xalles Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xalles Holdings and Kontrol Technologies 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 Kontrol Technologies Corp are associated (or correlated) with Xalles Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xalles Holdings has no effect on the direction of Kontrol Technologies i.e., Kontrol Technologies and Xalles Holdings go up and down completely randomly.
Pair Corralation between Kontrol Technologies and Xalles Holdings
Assuming the 90 days horizon Kontrol Technologies Corp is expected to generate 0.85 times more return on investment than Xalles Holdings. However, Kontrol Technologies Corp is 1.18 times less risky than Xalles Holdings. It trades about 0.06 of its potential returns per unit of risk. Xalles Holdings is currently generating about -0.02 per unit of risk. If you would invest 13.00 in Kontrol Technologies Corp on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Kontrol Technologies Corp or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontrol Technologies Corp vs. Xalles Holdings
Performance |
| Timeline |
| Kontrol Technologies Corp |
| Xalles Holdings |
Kontrol Technologies and Xalles Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontrol Technologies and Xalles Holdings
The main advantage of trading using opposite Kontrol Technologies and Xalles Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontrol Technologies position performs unexpectedly, Xalles 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 Xalles Holdings will offset losses from the drop in Xalles Holdings' long position.| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
| Xalles Holdings vs. Two Hands Corp | Xalles Holdings vs. Visium Technologies | Xalles Holdings vs. Tautachrome | Xalles Holdings vs. V 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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