Correlation Between KAR Auction and Revelyst,

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both KAR Auction and Revelyst, 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 KAR Auction and Revelyst, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KAR Auction Services and Revelyst,, you can compare the effects of market volatilities on KAR Auction and Revelyst, 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 KAR Auction with a short position of Revelyst,. Check out your portfolio center. Please also check ongoing floating volatility patterns of KAR Auction and Revelyst,.

Diversification Opportunities for KAR Auction and Revelyst,

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between KAR and Revelyst, is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding KAR Auction Services and Revelyst, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revelyst, and KAR Auction 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 KAR Auction Services are associated (or correlated) with Revelyst,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revelyst, has no effect on the direction of KAR Auction i.e., KAR Auction and Revelyst, go up and down completely randomly.

Pair Corralation between KAR Auction and Revelyst,

Considering the 90-day investment horizon KAR Auction Services is expected to under-perform the Revelyst,. In addition to that, KAR Auction is 1.06 times more volatile than Revelyst,. It trades about -0.05 of its total potential returns per unit of risk. Revelyst, is currently generating about 0.27 per unit of volatility. If you would invest  1,901  in Revelyst, on October 6, 2024 and sell it today you would earn a total of  107.00  from holding Revelyst, or generate 5.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

KAR Auction Services  vs.  Revelyst,

 Performance 
       Timeline  
KAR Auction Services 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in KAR Auction Services are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, KAR Auction reported solid returns over the last few months and may actually be approaching a breakup point.
Revelyst, 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Revelyst, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

KAR Auction and Revelyst, Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KAR Auction and Revelyst,

The main advantage of trading using opposite KAR Auction and Revelyst, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KAR Auction position performs unexpectedly, Revelyst, 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 Revelyst, will offset losses from the drop in Revelyst,'s long position.
The idea behind KAR Auction Services and Revelyst, 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Commodity Directory
Find actively traded commodities issued by global exchanges
Money Managers
Screen money managers from public funds and ETFs managed around the world
Share Portfolio
Track or share privately all of your investments from the convenience of any device