Correlation Between Adventure Box and Goodbye Kansas

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

By analyzing existing cross correlation between Adventure Box Technology and Goodbye Kansas Group, you can compare the effects of market volatilities on Adventure Box and Goodbye Kansas 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 Adventure Box with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adventure Box and Goodbye Kansas.

Diversification Opportunities for Adventure Box and Goodbye Kansas

-0.23

Correlation Coefficient

Adventure Box  Goodbye Kansas

Very good diversification

The 3 months correlation between Adventure and Goodbye is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Adventure Box Technology and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Adventure Box 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 Adventure Box Technology are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Adventure Box i.e., Adventure Box and Goodbye Kansas go up and down completely randomly.

Pair Corralation between Adventure Box and Goodbye Kansas

Assuming the 90 days trading horizon Adventure Box Technology is expected to under-perform the Goodbye Kansas. In addition to that, Adventure Box is 1.06 times more volatile than Goodbye Kansas Group. It trades about -0.33 of its total potential returns per unit of risk. Goodbye Kansas Group is currently generating about 0.5 per unit of volatility. If you would invest  145.00  in Goodbye Kansas Group on October 24, 2024 and sell it today you would earn a total of  63.00  from holding Goodbye Kansas Group or generate 43.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

Adventure Box Technology  vs.  Goodbye Kansas Group

Adventure Box Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Goodbye Kansas Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Goodbye Kansas Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Goodbye Kansas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adventure Box and Goodbye Kansas

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

The idea behind Adventure Box Technology and Goodbye Kansas Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.