Correlation Between Kinaxis and Adcore
Can any of the company-specific risk be diversified away by investing in both Kinaxis and Adcore 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 Kinaxis and Adcore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and Adcore Inc, you can compare the effects of market volatilities on Kinaxis and Adcore 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 Kinaxis with a short position of Adcore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and Adcore.
Diversification Opportunities for Kinaxis and Adcore
Good diversification
The 3 months correlation between Kinaxis and Adcore is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and Kinaxis 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 Kinaxis are associated (or correlated) with Adcore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adcore Inc has no effect on the direction of Kinaxis i.e., Kinaxis and Adcore go up and down completely randomly.
Pair Corralation between Kinaxis and Adcore
Assuming the 90 days trading horizon Kinaxis is expected to generate 0.55 times more return on investment than Adcore. However, Kinaxis is 1.81 times less risky than Adcore. It trades about 0.23 of its potential returns per unit of risk. Adcore Inc is currently generating about 0.02 per unit of risk. If you would invest 15,772 in Kinaxis on September 13, 2024 and sell it today you would earn a total of 2,826 from holding Kinaxis or generate 17.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinaxis vs. Adcore Inc
Performance |
| Timeline |
| Kinaxis |
| Adcore Inc |
Kinaxis and Adcore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinaxis and Adcore
The main advantage of trading using opposite Kinaxis and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis position performs unexpectedly, Adcore 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 Adcore will offset losses from the drop in Adcore's long position.| Kinaxis vs. Adcore Inc | Kinaxis vs. Emerge Commerce | Kinaxis vs. Quisitive Technology Solutions | Kinaxis vs. DGTL Holdings |
| Adcore vs. Emerge Commerce | Adcore vs. Quisitive Technology Solutions | Adcore vs. DGTL Holdings | Adcore vs. Plurilock Security |
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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