Correlation Between KlausTech and Kidoz

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

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

Diversification Opportunities for KlausTech and Kidoz

0.0

Correlation Coefficient

KlausTech  Kidoz

Pay attention - limited upside

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

Pair Corralation between KlausTech and Kidoz

If you would invest  10.00  in Kidoz Inc on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Kidoz Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

KlausTech  vs.  Kidoz Inc

KlausTech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KlausTech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, KlausTech is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Kidoz Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kidoz Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kidoz reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KlausTech and Kidoz

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

The idea behind KlausTech and Kidoz 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.