Correlation Between Kulthorn Kirby and Fine Metal

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

By analyzing existing cross correlation between Kulthorn Kirby Public and Fine Metal Technologies, you can compare the effects of market volatilities on Kulthorn Kirby and Fine Metal 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 Kulthorn Kirby with a short position of Fine Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulthorn Kirby and Fine Metal.

Diversification Opportunities for Kulthorn Kirby and Fine Metal

0.0

Correlation Coefficient

Kulthorn Kirby  Fine Metal

Pay attention - limited upside

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

Pair Corralation between Kulthorn Kirby and Fine Metal

If you would invest  4.00  in Kulthorn Kirby Public on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Kulthorn Kirby Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Kulthorn Kirby Public  vs.  Fine Metal Technologies

Kulthorn Kirby Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kulthorn Kirby Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Kulthorn Kirby is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Fine Metal Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fine Metal Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Kulthorn Kirby and Fine Metal

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

The idea behind Kulthorn Kirby Public and Fine Metal 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.