Correlation Between Consilium Acquisition and Keen Vision

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

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

Diversification Opportunities for Consilium Acquisition and Keen Vision

-0.01

Correlation Coefficient

Consilium Acquisition  Keen Vision

Good diversification

The 3 months correlation between Consilium and Keen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Consilium Acquisition I and Keen Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keen Vision Acquisition and Consilium Acquisition 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 Consilium Acquisition I are associated (or correlated) with Keen Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keen Vision Acquisition has no effect on the direction of Consilium Acquisition i.e., Consilium Acquisition and Keen Vision go up and down completely randomly.

Pair Corralation between Consilium Acquisition and Keen Vision

Given the investment horizon of 90 days Consilium Acquisition is expected to generate 67.44 times less return on investment than Keen Vision. But when comparing it to its historical volatility, Consilium Acquisition I is 164.09 times less risky than Keen Vision. It trades about 0.11 of its potential returns per unit of risk. Keen Vision Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,346  in Keen Vision Acquisition on October 23, 2024 and sell it today you would lose (243.00) from holding Keen Vision Acquisition or give up 18.05% of portfolio value over 90 days.

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

Consilium Acquisition I  vs.  Keen Vision Acquisition

Consilium Acquisition

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Consilium Acquisition I are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady essential indicators, Consilium Acquisition may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Keen Vision Acquisition

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Keen Vision Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, Keen Vision may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Consilium Acquisition and Keen Vision

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

The idea behind Consilium Acquisition I and Keen Vision Acquisition 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.