Correlation Between Koios Beverage and Stryve Foods

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

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

Diversification Opportunities for Koios Beverage and Stryve Foods

0.07

Correlation Coefficient

Koios Beverage  Stryve Foods

Significant diversification

The 3 months correlation between Koios and Stryve is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Koios Beverage Corp and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and Koios Beverage 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 Koios Beverage Corp are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Koios Beverage i.e., Koios Beverage and Stryve Foods go up and down completely randomly.

Pair Corralation between Koios Beverage and Stryve Foods

Assuming the 90 days horizon Koios Beverage Corp is expected to generate 18.76 times more return on investment than Stryve Foods. However, Koios Beverage is 18.76 times more volatile than Stryve Foods. It trades about 0.2 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.06 per unit of risk. If you would invest  1.40  in Koios Beverage Corp on December 28, 2024 and sell it today you would earn a total of  21.60  from holding Koios Beverage Corp or generate 1542.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	46.77%
Values	Daily Returns

Koios Beverage Corp  vs.  Stryve Foods

Koios Beverage Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Koios Beverage Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Koios Beverage reported solid returns over the last few months and may actually be approaching a breakup point.

Stryve Foods

Risk-Adjusted Performance

Insignificant

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Stryve Foods showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koios Beverage and Stryve Foods

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

The idea behind Koios Beverage Corp and Stryve Foods 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.