Correlation Between Kernel Group and CONX Corp
Can any of the company-specific risk be diversified away by investing in both Kernel Group and CONX Corp 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 CONX Corp 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 CONX Corp, you can compare the effects of market volatilities on Kernel Group and CONX Corp 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 CONX Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kernel Group and CONX Corp.
Diversification Opportunities for Kernel Group and CONX Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kernel and CONX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kernel Group Holdings and CONX Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONX 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 CONX Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONX Corp has no effect on the direction of Kernel Group i.e., Kernel Group and CONX Corp go up and down completely randomly.
Pair Corralation between Kernel Group and CONX Corp
Assuming the 90 days horizon Kernel Group is expected to generate 1.12 times less return on investment than CONX Corp. In addition to that, Kernel Group is 8.23 times more volatile than CONX Corp. It trades about 0.01 of its total potential returns per unit of risk. CONX Corp is currently generating about 0.13 per unit of volatility. If you would invest 1,010 in CONX Corp on November 5, 2024 and sell it today you would earn a total of 33.00 from holding CONX Corp or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 29.57% |
| Values | Daily Returns |
Kernel Group Holdings vs. CONX Corp
Performance |
| Timeline |
| Kernel Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CONX Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kernel Group and CONX Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kernel Group and CONX Corp
The main advantage of trading using opposite Kernel Group and CONX Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kernel Group position performs unexpectedly, CONX Corp 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 CONX Corp will offset losses from the drop in CONX Corp's long position.The idea behind Kernel Group Holdings and CONX 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.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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