Correlation Between Kasten and Apeiron Capital

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

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

Diversification Opportunities for Kasten and Apeiron Capital

0.0

Correlation Coefficient

Kasten  Apeiron Capital

Pay attention - limited upside

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

Pair Corralation between Kasten and Apeiron Capital

If you would invest  0.60  in Kasten Inc on December 29, 2024 and sell it today you would lose (0.07) from holding Kasten Inc or give up 11.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kasten Inc  vs.  Apeiron Capital Investment

Kasten Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kasten Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kasten unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apeiron Capital Inve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apeiron Capital Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Apeiron Capital is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kasten and Apeiron Capital

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

The idea behind Kasten Inc and Apeiron Capital Investment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.