Correlation Between Decisionpoint Systems and Kinaxis

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

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

Diversification Opportunities for Decisionpoint Systems and Kinaxis

0.0

Correlation Coefficient

Decisionpoint Systems  Kinaxis

Pay attention - limited upside

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

Pair Corralation between Decisionpoint Systems and Kinaxis

If you would invest  11,297  in Kinaxis on October 26, 2024 and sell it today you would earn a total of  1,019  from holding Kinaxis or generate 9.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Decisionpoint Systems  vs.  Kinaxis

Decisionpoint Systems

Risk-Adjusted Performance

0 of 100

Very Weak

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

Kinaxis

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Kinaxis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Decisionpoint Systems and Kinaxis

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

The idea behind Decisionpoint Systems and Kinaxis 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 Global Correlations module to find global opportunities by holding instruments from different markets.