Correlation Between Cable One and Kinea Hedge

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

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

Diversification Opportunities for Cable One and Kinea Hedge

-0.75

Correlation Coefficient

Cable One  Kinea Hedge

Pay attention - limited upside

The 3 months correlation between Cable and Kinea is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and Kinea Hedge Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Hedge Fund and Cable One 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 Cable One are associated (or correlated) with Kinea Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Hedge Fund has no effect on the direction of Cable One i.e., Cable One and Kinea Hedge go up and down completely randomly.

Pair Corralation between Cable One and Kinea Hedge

Assuming the 90 days trading horizon Cable One is expected to under-perform the Kinea Hedge. In addition to that, Cable One is 3.46 times more volatile than Kinea Hedge Fund. It trades about -0.03 of its total potential returns per unit of risk. Kinea Hedge Fund is currently generating about -0.03 per unit of volatility. If you would invest  8,943  in Kinea Hedge Fund on September 26, 2024 and sell it today you would lose (776.00) from holding Kinea Hedge Fund or give up 8.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.41%
Values	Daily Returns

Cable One  vs.  Kinea Hedge Fund

Cable One

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cable One are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cable One sustained solid returns over the last few months and may actually be approaching a breakup point.

Kinea Hedge Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kinea Hedge Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Cable One and Kinea Hedge

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

The idea behind Cable One and Kinea Hedge Fund 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..