Correlation Between Spin Master and Kinaxis
Can any of the company-specific risk be diversified away by investing in both Spin Master 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 Spin Master and Kinaxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spin Master Corp and Kinaxis, you can compare the effects of market volatilities on Spin Master 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 Spin Master with a short position of Kinaxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spin Master and Kinaxis.
Diversification Opportunities for Spin Master and Kinaxis
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spin and Kinaxis is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Spin Master Corp and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Spin Master 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 Spin Master Corp 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 Spin Master i.e., Spin Master and Kinaxis go up and down completely randomly.
Pair Corralation between Spin Master and Kinaxis
Assuming the 90 days trading horizon Spin Master is expected to generate 1.7 times less return on investment than Kinaxis. But when comparing it to its historical volatility, Spin Master Corp is 1.61 times less risky than Kinaxis. It trades about 0.35 of its potential returns per unit of risk. Kinaxis is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 15,464 in Kinaxis on September 1, 2024 and sell it today you would earn a total of 2,883 from holding Kinaxis or generate 18.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spin Master Corp vs. Kinaxis
Performance |
| Timeline |
| Spin Master Corp |
| Kinaxis |
Spin Master and Kinaxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spin Master and Kinaxis
The main advantage of trading using opposite Spin Master and Kinaxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spin Master 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.| Spin Master vs. Kinaxis | Spin Master vs. Premium Brands Holdings | Spin Master vs. Gildan Activewear | Spin Master vs. CCL Industries |
| Kinaxis vs. Open Text Corp | Kinaxis vs. Enghouse Systems | Kinaxis vs. Docebo Inc | Kinaxis vs. Descartes Systems Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |