Correlation Between Kingstone Companies and Wilhelmina

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

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

Diversification Opportunities for Kingstone Companies and Wilhelmina

0.0

Correlation Coefficient

Kingstone Companies  Wilhelmina

Pay attention - limited upside

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

Pair Corralation between Kingstone Companies and Wilhelmina

If you would invest  1,506  in Kingstone Companies on December 22, 2024 and sell it today you would earn a total of  30.00  from holding Kingstone Companies or generate 1.99% return on investment over 90 days.

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

Kingstone Companies  vs.  Wilhelmina

Kingstone Companies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kingstone Companies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Kingstone Companies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Wilhelmina

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wilhelmina has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Wilhelmina is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kingstone Companies and Wilhelmina

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

The idea behind Kingstone Companies and Wilhelmina 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.