Correlation Between Cellink AB and KASPIKZ 1

Can any of the company-specific risk be diversified away by investing in both Cellink AB and KASPIKZ 1 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 Cellink AB and KASPIKZ 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cellink AB and KASPIKZ 1, you can compare the effects of market volatilities on Cellink AB and KASPIKZ 1 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 Cellink AB with a short position of KASPIKZ 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellink AB and KASPIKZ 1.

Diversification Opportunities for Cellink AB and KASPIKZ 1

-0.01

Correlation Coefficient

Cellink AB  KASPIKZ 1

Good diversification

The 3 months correlation between Cellink and KASPIKZ is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cellink AB and KASPIKZ 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KASPIKZ 1 and Cellink AB 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 Cellink AB are associated (or correlated) with KASPIKZ 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KASPIKZ 1 has no effect on the direction of Cellink AB i.e., Cellink AB and KASPIKZ 1 go up and down completely randomly.

Pair Corralation between Cellink AB and KASPIKZ 1

Assuming the 90 days horizon Cellink AB is expected to under-perform the KASPIKZ 1. In addition to that, Cellink AB is 1.78 times more volatile than KASPIKZ 1. It trades about -0.05 of its total potential returns per unit of risk. KASPIKZ 1 is currently generating about -0.04 per unit of volatility. If you would invest  11,208  in KASPIKZ 1 on September 5, 2024 and sell it today you would lose (1,358) from holding KASPIKZ 1 or give up 12.12% of portfolio value over 90 days.

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

Cellink AB  vs.  KASPIKZ 1

Cellink AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cellink AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

KASPIKZ 1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KASPIKZ 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Cellink AB and KASPIKZ 1

The main advantage of trading using opposite Cellink AB and KASPIKZ 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellink AB position performs unexpectedly, KASPIKZ 1 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 KASPIKZ 1 will offset losses from the drop in KASPIKZ 1's long position.

The idea behind Cellink AB and KASPIKZ 1 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.