Correlation Between Issuer Direct and Kubient

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

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

Diversification Opportunities for Issuer Direct and Kubient

0.06

Correlation Coefficient

Issuer Direct  Kubient

Significant diversification

The 3 months correlation between Issuer and Kubient is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Issuer Direct Corp and Kubient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kubient and Issuer Direct 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 Issuer Direct Corp 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 Issuer Direct i.e., Issuer Direct and Kubient go up and down completely randomly.

Pair Corralation between Issuer Direct and Kubient

If you would invest  57.00  in Kubient on September 27, 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	Insignificant
Accuracy	4.76%
Values	Daily Returns

Issuer Direct Corp  vs.  Kubient

Issuer Direct Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Issuer Direct Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail 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 comparatively stable basic indicators, Kubient is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Issuer Direct and Kubient

The main advantage of trading using opposite Issuer Direct and Kubient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issuer Direct 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 Issuer Direct Corp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.