Correlation Between KHVATEC CoLtd and Com2uS

Can any of the company-specific risk be diversified away by investing in both KHVATEC CoLtd and Com2uS 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 KHVATEC CoLtd and Com2uS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KHVATEC CoLtd and Com2uS, you can compare the effects of market volatilities on KHVATEC CoLtd and Com2uS 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 KHVATEC CoLtd with a short position of Com2uS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KHVATEC CoLtd and Com2uS.

Diversification Opportunities for KHVATEC CoLtd and Com2uS

-0.25

Correlation Coefficient

KHVATEC CoLtd  Com2uS

Very good diversification

The 3 months correlation between KHVATEC and Com2uS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding KHVATEC CoLtd and Com2uS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com2uS and KHVATEC CoLtd 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 KHVATEC CoLtd are associated (or correlated) with Com2uS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com2uS has no effect on the direction of KHVATEC CoLtd i.e., KHVATEC CoLtd and Com2uS go up and down completely randomly.

Pair Corralation between KHVATEC CoLtd and Com2uS

Assuming the 90 days trading horizon KHVATEC CoLtd is expected to generate 1.37 times more return on investment than Com2uS. However, KHVATEC CoLtd is 1.37 times more volatile than Com2uS. It trades about 0.09 of its potential returns per unit of risk. Com2uS is currently generating about -0.1 per unit of risk. If you would invest  809,331  in KHVATEC CoLtd on December 2, 2024 and sell it today you would earn a total of  133,669  from holding KHVATEC CoLtd or generate 16.52% return on investment over 90 days.

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

KHVATEC CoLtd  vs.  Com2uS

KHVATEC CoLtd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KHVATEC CoLtd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, KHVATEC CoLtd sustained solid returns over the last few months and may actually be approaching a breakup point.

Com2uS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Com2uS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with KHVATEC CoLtd and Com2uS

The main advantage of trading using opposite KHVATEC CoLtd and Com2uS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KHVATEC CoLtd position performs unexpectedly, Com2uS 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 Com2uS will offset losses from the drop in Com2uS's long position.

The idea behind KHVATEC CoLtd and Com2uS 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.