Correlation Between Real Matters and Kinaxis
Can any of the company-specific risk be diversified away by investing in both Real Matters and Kinaxis 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 Real Matters and Kinaxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Matters and Kinaxis, you can compare the effects of market volatilities on Real Matters and Kinaxis 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 Real Matters with a short position of Kinaxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Matters and Kinaxis.
Diversification Opportunities for Real Matters and Kinaxis
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Real and Kinaxis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Real Matters and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Real Matters 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 Real Matters are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Real Matters i.e., Real Matters and Kinaxis go up and down completely randomly.
Pair Corralation between Real Matters and Kinaxis
Assuming the 90 days trading horizon Real Matters is expected to under-perform the Kinaxis. In addition to that, Real Matters is 1.13 times more volatile than Kinaxis. It trades about -0.22 of its total potential returns per unit of risk. Kinaxis is currently generating about 0.27 per unit of volatility. If you would invest 15,608 in Kinaxis on August 28, 2024 and sell it today you would earn a total of 2,112 from holding Kinaxis or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Matters vs. Kinaxis
Performance |
| Timeline |
| Real Matters |
| Kinaxis |
Real Matters and Kinaxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Matters and Kinaxis
The main advantage of trading using opposite Real Matters and Kinaxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Matters position performs unexpectedly, Kinaxis 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 Kinaxis will offset losses from the drop in Kinaxis' long position.| Real Matters vs. Kinaxis | Real Matters vs. Docebo Inc | Real Matters vs. Enghouse Systems | Real Matters vs. Dye Durham |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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