Correlation Between Khiron Life and Ubiquitech Software

Can any of the company-specific risk be diversified away by investing in both Khiron Life and Ubiquitech Software 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 Ubiquitech Software 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 Ubiquitech Software, you can compare the effects of market volatilities on Khiron Life and Ubiquitech Software 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 Ubiquitech Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Ubiquitech Software.

Diversification Opportunities for Khiron Life and Ubiquitech Software

0.0

Correlation Coefficient

Khiron Life  Ubiquitech Software

Pay attention - limited upside

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

Pair Corralation between Khiron Life and Ubiquitech Software

Assuming the 90 days horizon Khiron Life Sciences is expected to under-perform the Ubiquitech Software. But the pink sheet apears to be less risky and, when comparing its historical volatility, Khiron Life Sciences is 29.9 times less risky than Ubiquitech Software. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Ubiquitech Software is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Ubiquitech Software on October 27, 2024 and sell it today you would lose (0.01) from holding Ubiquitech Software or give up 100.0% of portfolio value over 90 days.

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

Khiron Life Sciences  vs.  Ubiquitech Software

Khiron Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Khiron Life Sciences 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.

Ubiquitech Software

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ubiquitech Software are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Ubiquitech Software unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Khiron Life and Ubiquitech Software

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

The idea behind Khiron Life Sciences and Ubiquitech Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..