Correlation Between Agent Information and Kaspien Holdings

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

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

Diversification Opportunities for Agent Information and Kaspien Holdings

-0.35

Correlation Coefficient

Agent Information  Kaspien Holdings

Very good diversification

The 3 months correlation between Agent and Kaspien is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agent Information Software and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien Holdings and Agent Information 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 Agent Information Software are associated (or correlated) with Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of Agent Information i.e., Agent Information and Kaspien Holdings go up and down completely randomly.

Pair Corralation between Agent Information and Kaspien Holdings

If you would invest  140.00  in Agent Information Software on October 10, 2024 and sell it today you would lose (16.00) from holding Agent Information Software or give up 11.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

Agent Information Software  vs.  Kaspien Holdings

Agent Information

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agent Information Software are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Agent Information unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kaspien Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaspien Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Kaspien Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Agent Information and Kaspien Holdings

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

The idea behind Agent Information Software and Kaspien Holdings 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.