Correlation Between Kiaro Holdings and GABY

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

By analyzing existing cross correlation between Kiaro Holdings Corp and GABY Inc, you can compare the effects of market volatilities on Kiaro Holdings and GABY 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 Kiaro Holdings with a short position of GABY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiaro Holdings and GABY.

Diversification Opportunities for Kiaro Holdings and GABY

0.0

Correlation Coefficient

Kiaro Holdings  GABY

Pay attention - limited upside

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

Pair Corralation between Kiaro Holdings and GABY

If you would invest  0.51  in Kiaro Holdings Corp on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Kiaro Holdings Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kiaro Holdings Corp  vs.  GABY Inc

Kiaro Holdings Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kiaro Holdings Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Kiaro Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

GABY Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GABY Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, GABY is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kiaro Holdings and GABY

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

The idea behind Kiaro Holdings Corp and GABY Inc 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.