Correlation Between Kubient and Fernhill Corp

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

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

Diversification Opportunities for Kubient and Fernhill Corp

0.19

Correlation Coefficient

Kubient  Fernhill Corp

Average diversification

The 3 months correlation between Kubient and Fernhill is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kubient and Fernhill Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fernhill Corp 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 Fernhill Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fernhill Corp has no effect on the direction of Kubient i.e., Kubient and Fernhill Corp go up and down completely randomly.

Pair Corralation between Kubient and Fernhill Corp

If you would invest  0.08  in Fernhill Corp on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Fernhill Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Kubient  vs.  Fernhill Corp

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.

Fernhill Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fernhill Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fernhill Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kubient and Fernhill Corp

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

The idea behind Kubient and Fernhill Corp 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.