Correlation Between Slam Corp and Kernel Group
Can any of the company-specific risk be diversified away by investing in both Slam Corp and Kernel Group 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 Slam Corp and Kernel Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slam Corp and Kernel Group Holdings, you can compare the effects of market volatilities on Slam Corp and Kernel Group 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 Slam Corp with a short position of Kernel Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slam Corp and Kernel Group.
Diversification Opportunities for Slam Corp and Kernel Group
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Slam and Kernel is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Slam Corp and Kernel Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kernel Group Holdings and Slam Corp 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 Slam Corp are associated (or correlated) with Kernel Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kernel Group Holdings has no effect on the direction of Slam Corp i.e., Slam Corp and Kernel Group go up and down completely randomly.
Pair Corralation between Slam Corp and Kernel Group
Assuming the 90 days horizon Slam Corp is expected to generate 5.66 times more return on investment than Kernel Group. However, Slam Corp is 5.66 times more volatile than Kernel Group Holdings. It trades about 0.12 of its potential returns per unit of risk. Kernel Group Holdings is currently generating about -0.23 per unit of risk. If you would invest 15.00 in Slam Corp on September 1, 2024 and sell it today you would lose (3.00) from holding Slam Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 51.67% |
| Values | Daily Returns |
Slam Corp vs. Kernel Group Holdings
Performance |
| Timeline |
| Slam Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kernel Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Slam Corp and Kernel Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slam Corp and Kernel Group
The main advantage of trading using opposite Slam Corp and Kernel Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slam Corp position performs unexpectedly, Kernel Group 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 Kernel Group will offset losses from the drop in Kernel Group's long position.The idea behind Slam Corp and Kernel Group Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |