Correlation Between International Zeolite and Kiplin Metals

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

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

Diversification Opportunities for International Zeolite and Kiplin Metals

-0.49

Correlation Coefficient

International Zeolite  Kiplin Metals

Very good diversification

The 3 months correlation between International and Kiplin is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding International Zeolite Corp and Kiplin Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiplin Metals and International Zeolite 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 International Zeolite Corp are associated (or correlated) with Kiplin Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiplin Metals has no effect on the direction of International Zeolite i.e., International Zeolite and Kiplin Metals go up and down completely randomly.

Pair Corralation between International Zeolite and Kiplin Metals

Given the investment horizon of 90 days International Zeolite Corp is expected to under-perform the Kiplin Metals. In addition to that, International Zeolite is 1.49 times more volatile than Kiplin Metals. It trades about -0.05 of its total potential returns per unit of risk. Kiplin Metals is currently generating about 0.07 per unit of volatility. If you would invest  26.00  in Kiplin Metals on December 1, 2024 and sell it today you would earn a total of  5.00  from holding Kiplin Metals or generate 19.23% return on investment over 90 days.

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

International Zeolite Corp  vs.  Kiplin Metals

International Zeolite

Risk-Adjusted Performance

Very Weak

Over the last 90 days International Zeolite Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Kiplin Metals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kiplin Metals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kiplin Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with International Zeolite and Kiplin Metals

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

The idea behind International Zeolite Corp and Kiplin Metals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.