Correlation Between Stic Investments and Kaonmedia

Can any of the company-specific risk be diversified away by investing in both Stic Investments and Kaonmedia 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 Stic Investments and Kaonmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stic Investments and Kaonmedia Co, you can compare the effects of market volatilities on Stic Investments and Kaonmedia 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 Stic Investments with a short position of Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Kaonmedia.

Diversification Opportunities for Stic Investments and Kaonmedia

-0.34

Correlation Coefficient

Stic Investments  Kaonmedia

Very good diversification

The 3 months correlation between Stic and Kaonmedia is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia and Stic Investments 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 Stic Investments are associated (or correlated) with Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Stic Investments i.e., Stic Investments and Kaonmedia go up and down completely randomly.

Pair Corralation between Stic Investments and Kaonmedia

Assuming the 90 days trading horizon Stic Investments is expected to under-perform the Kaonmedia. But the stock apears to be less risky and, when comparing its historical volatility, Stic Investments is 1.33 times less risky than Kaonmedia. The stock trades about -0.4 of its potential returns per unit of risk. The Kaonmedia Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  296,034  in Kaonmedia Co on October 25, 2024 and sell it today you would earn a total of  19,966  from holding Kaonmedia Co or generate 6.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stic Investments  vs.  Kaonmedia Co

Stic Investments

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stic Investments are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Stic Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kaonmedia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaonmedia Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Stic Investments and Kaonmedia

The main advantage of trading using opposite Stic Investments and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.

The idea behind Stic Investments and Kaonmedia Co 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.