Correlation Between Autozi Internet and Kirklands

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

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

Diversification Opportunities for Autozi Internet and Kirklands

-0.62

Correlation Coefficient

Autozi Internet  Kirklands

Excellent diversification

The 3 months correlation between Autozi and Kirklands is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Autozi Internet Technology and Kirklands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirklands and Autozi Internet 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 Autozi Internet Technology are associated (or correlated) with Kirklands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirklands has no effect on the direction of Autozi Internet i.e., Autozi Internet and Kirklands go up and down completely randomly.

Pair Corralation between Autozi Internet and Kirklands

Considering the 90-day investment horizon Autozi Internet Technology is expected to under-perform the Kirklands. In addition to that, Autozi Internet is 3.2 times more volatile than Kirklands. It trades about -0.02 of its total potential returns per unit of risk. Kirklands is currently generating about 0.09 per unit of volatility. If you would invest  146.00  in Kirklands on August 30, 2024 and sell it today you would earn a total of  29.00  from holding Kirklands or generate 19.86% return on investment over 90 days.

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

Autozi Internet Technology  vs.  Kirklands

Autozi Internet Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autozi Internet Technology 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 fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Kirklands

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kirklands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Kirklands disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Autozi Internet and Kirklands

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

The idea behind Autozi Internet Technology and Kirklands 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.