Correlation Between 10X Capital and Kairous Acquisition
Can any of the company-specific risk be diversified away by investing in both 10X Capital and Kairous Acquisition 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 10X Capital and Kairous Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Capital Venture and Kairous Acquisition Corp, you can compare the effects of market volatilities on 10X Capital and Kairous Acquisition 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 10X Capital with a short position of Kairous Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Capital and Kairous Acquisition.
Diversification Opportunities for 10X Capital and Kairous Acquisition
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between 10X and Kairous is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding 10X Capital Venture and Kairous Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kairous Acquisition Corp and 10X Capital 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 10X Capital Venture are associated (or correlated) with Kairous Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kairous Acquisition Corp has no effect on the direction of 10X Capital i.e., 10X Capital and Kairous Acquisition go up and down completely randomly.
Pair Corralation between 10X Capital and Kairous Acquisition
If you would invest 12.00 in Kairous Acquisition Corp on September 1, 2024 and sell it today you would lose (4.99) from holding Kairous Acquisition Corp or give up 41.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.85% |
| Values | Daily Returns |
10X Capital Venture vs. Kairous Acquisition Corp
Performance |
| Timeline |
| 10X Capital Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kairous Acquisition Corp |
10X Capital and Kairous Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Capital and Kairous Acquisition
The main advantage of trading using opposite 10X Capital and Kairous Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Capital position performs unexpectedly, Kairous Acquisition 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 Kairous Acquisition will offset losses from the drop in Kairous Acquisition's long position.The idea behind 10X Capital Venture and Kairous Acquisition Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| 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 | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |