Correlation Between Kulthorn Kirby and GFPT Public

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

Diversification Opportunities for Kulthorn Kirby and GFPT Public

0.0

Correlation Coefficient

Kulthorn Kirby  GFPT Public

Pay attention - limited upside

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

Pair Corralation between Kulthorn Kirby and GFPT Public

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.  GFPT Public

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.

GFPT Public

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Kulthorn Kirby and GFPT Public

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

The idea behind Kulthorn Kirby Public and GFPT Public 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.