Correlation Between CHKEL Old and Kubient

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

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

Diversification Opportunities for CHKEL Old and Kubient

0.62

Correlation Coefficient

CHKEL Old  Kubient

Poor diversification

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

Pair Corralation between CHKEL Old and Kubient

If you would invest  2.89  in Kubient on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Kubient or generate 0.0% return on investment over 90 days.

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

CHKEL Old  vs.  Kubient

CHKEL Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHKEL Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, CHKEL Old is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Kubient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kubient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kubient is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CHKEL Old and Kubient

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

The idea behind CHKEL Old and Kubient 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.