Correlation Between Kubient and Presto Automation

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

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

Diversification Opportunities for Kubient and Presto Automation

0.0

Correlation Coefficient

Kubient  Presto Automation

Pay attention - limited upside

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

Pair Corralation between Kubient and Presto Automation

If you would invest (100.00) in Presto Automation on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Presto Automation or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kubient  vs.  Presto Automation

Kubient

Risk-Adjusted Performance

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.

Presto Automation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Presto Automation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Presto Automation is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kubient and Presto Automation

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

The idea behind Kubient and Presto Automation 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.