Correlation Between Kubient and Duos Technologies

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

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

Diversification Opportunities for Kubient and Duos Technologies

-0.36

Correlation Coefficient

Kubient  Duos Technologies

Very good diversification

The 3 months correlation between Kubient and Duos is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Duos Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duos Technologies and Kubient 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 Kubient are associated (or correlated) with Duos Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duos Technologies has no effect on the direction of Kubient i.e., Kubient and Duos Technologies go up and down completely randomly.

Pair Corralation between Kubient and Duos Technologies

If you would invest  279.00  in Duos Technologies Group on September 27, 2024 and sell it today you would earn a total of  258.00  from holding Duos Technologies Group or generate 92.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Kubient  vs.  Duos Technologies Group

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.

Duos Technologies

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Duos Technologies Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Duos Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kubient and Duos Technologies

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

The idea behind Kubient and Duos Technologies Group 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.