Correlation Between Kiaro Holdings and Indo Global

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

Diversification Opportunities for Kiaro Holdings and Indo Global

0.06

Correlation Coefficient

Kiaro Holdings  Indo Global

Significant diversification

The 3 months correlation between Kiaro and Indo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kiaro Holdings Corp and Indo Global Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Global Exchange 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 Indo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Global Exchange has no effect on the direction of Kiaro Holdings i.e., Kiaro Holdings and Indo Global go up and down completely randomly.

Pair Corralation between Kiaro Holdings and Indo Global

Assuming the 90 days horizon Kiaro Holdings Corp is expected to under-perform the Indo Global. In addition to that, Kiaro Holdings is 1.72 times more volatile than Indo Global Exchange. It trades about -0.13 of its total potential returns per unit of risk. Indo Global Exchange is currently generating about 0.07 per unit of volatility. If you would invest  0.06  in Indo Global Exchange on December 28, 2024 and sell it today you would earn a total of  0.01  from holding Indo Global Exchange or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Kiaro Holdings Corp  vs.  Indo Global Exchange

Kiaro Holdings Corp

Risk-Adjusted Performance

Very Weak

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

Indo Global Exchange

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Global Exchange are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Indo Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kiaro Holdings and Indo Global

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

The idea behind Kiaro Holdings Corp and Indo Global Exchange 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.