Correlation Between Khiron Life and Radient Technologies

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

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

Diversification Opportunities for Khiron Life and Radient Technologies

-0.13

Correlation Coefficient

Khiron Life  Radient Technologies

Good diversification

The 3 months correlation between Khiron and Radient is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Radient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radient Technologies and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Radient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radient Technologies has no effect on the direction of Khiron Life i.e., Khiron Life and Radient Technologies go up and down completely randomly.

Pair Corralation between Khiron Life and Radient Technologies

If you would invest  0.00  in Radient Technologies on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Radient Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Khiron Life Sciences  vs.  Radient Technologies

Khiron Life Sciences

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Khiron Life Sciences are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Khiron Life reported solid returns over the last few months and may actually be approaching a breakup point.

Radient Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Radient Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Khiron Life and Radient Technologies

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

The idea behind Khiron Life Sciences and Radient Technologies 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.