Correlation Between KwikClick and EGain
Can any of the company-specific risk be diversified away by investing in both KwikClick and EGain 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 KwikClick and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KwikClick and eGain, you can compare the effects of market volatilities on KwikClick and EGain 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 KwikClick with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of KwikClick and EGain.
Diversification Opportunities for KwikClick and EGain
Weak diversification
The 3 months correlation between KwikClick and EGain is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and KwikClick 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 KwikClick are associated (or correlated) with EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of KwikClick i.e., KwikClick and EGain go up and down completely randomly.
Pair Corralation between KwikClick and EGain
Given the investment horizon of 90 days KwikClick is expected to generate 2.41 times more return on investment than EGain. However, KwikClick is 2.41 times more volatile than eGain. It trades about 0.06 of its potential returns per unit of risk. eGain is currently generating about 0.02 per unit of risk. If you would invest 8.21 in KwikClick on August 30, 2024 and sell it today you would earn a total of 0.29 from holding KwikClick or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KwikClick vs. eGain
Performance |
| Timeline |
| KwikClick |
| eGain |
KwikClick and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KwikClick and EGain
The main advantage of trading using opposite KwikClick and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KwikClick position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| KwikClick vs. 01 Communique Laboratory | KwikClick vs. LifeSpeak | KwikClick vs. RESAAS Services | KwikClick vs. RenoWorks Software |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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