Correlation Between KORE Group and Crexendo
Can any of the company-specific risk be diversified away by investing in both KORE Group and Crexendo 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 KORE Group and Crexendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORE Group Holdings and Crexendo, you can compare the effects of market volatilities on KORE Group and Crexendo 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 KORE Group with a short position of Crexendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Crexendo.
Diversification Opportunities for KORE Group and Crexendo
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KORE and Crexendo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Crexendo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crexendo and KORE Group 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 KORE Group Holdings are associated (or correlated) with Crexendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crexendo has no effect on the direction of KORE Group i.e., KORE Group and Crexendo go up and down completely randomly.
Pair Corralation between KORE Group and Crexendo
Given the investment horizon of 90 days KORE Group is expected to generate 16.46 times less return on investment than Crexendo. In addition to that, KORE Group is 1.81 times more volatile than Crexendo. It trades about 0.0 of its total potential returns per unit of risk. Crexendo is currently generating about 0.02 per unit of volatility. If you would invest 584.00 in Crexendo on November 3, 2024 and sell it today you would lose (7.00) from holding Crexendo or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORE Group Holdings vs. Crexendo
Performance |
| Timeline |
| KORE Group Holdings |
| Crexendo |
KORE Group and Crexendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Group and Crexendo
The main advantage of trading using opposite KORE Group and Crexendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group position performs unexpectedly, Crexendo 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 Crexendo will offset losses from the drop in Crexendo's long position.| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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