Correlation Between Kernel Group and Israel Acquisitions
Can any of the company-specific risk be diversified away by investing in both Kernel Group and Israel Acquisitions 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 Kernel Group and Israel Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kernel Group Holdings and Israel Acquisitions Corp, you can compare the effects of market volatilities on Kernel Group and Israel Acquisitions 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 Kernel Group with a short position of Israel Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kernel Group and Israel Acquisitions.
Diversification Opportunities for Kernel Group and Israel Acquisitions
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kernel and Israel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kernel Group Holdings and Israel Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Acquisitions Corp and Kernel 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 Kernel Group Holdings are associated (or correlated) with Israel Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Acquisitions Corp has no effect on the direction of Kernel Group i.e., Kernel Group and Israel Acquisitions go up and down completely randomly.
Pair Corralation between Kernel Group and Israel Acquisitions
If you would invest 1,124 in Israel Acquisitions Corp on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Israel Acquisitions Corp or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Kernel Group Holdings vs. Israel Acquisitions Corp
Performance |
| Timeline |
| Kernel Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Israel Acquisitions Corp |
Kernel Group and Israel Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kernel Group and Israel Acquisitions
The main advantage of trading using opposite Kernel Group and Israel Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kernel Group position performs unexpectedly, Israel Acquisitions 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 Israel Acquisitions will offset losses from the drop in Israel Acquisitions' long position.The idea behind Kernel Group Holdings and Israel Acquisitions Corp 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.| Israel Acquisitions vs. Consilium Acquisition I | Israel Acquisitions vs. DP Cap Acquisition | Israel Acquisitions vs. A SPAC II | Israel Acquisitions vs. Athena Technology Acquisition |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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