Correlation Between Kalray SA and Munic SA

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

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

Diversification Opportunities for Kalray SA and Munic SA

0.0

Correlation Coefficient

Kalray SA  Munic SA

Pay attention - limited upside

The 3 months correlation between Kalray and Munic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kalray SA and Munic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munic SA and Kalray SA 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 Kalray SA are associated (or correlated) with Munic SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munic SA has no effect on the direction of Kalray SA i.e., Kalray SA and Munic SA go up and down completely randomly.

Pair Corralation between Kalray SA and Munic SA

If you would invest  0.00  in Munic SA on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Munic SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Kalray SA  vs.  Munic SA

Kalray SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kalray SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kalray SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Munic SA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Munic SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Munic SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Kalray SA and Munic SA

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

The idea behind Kalray SA and Munic SA 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.