Correlation Between Kamino and Yield Guild

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

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

Diversification Opportunities for Kamino and Yield Guild

0.8

Correlation Coefficient

Kamino  Yield Guild

Very poor diversification

The 3 months correlation between Kamino and Yield is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kamino and Yield Guild Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yield Guild Games and Kamino 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 Kamino are associated (or correlated) with Yield Guild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yield Guild Games has no effect on the direction of Kamino i.e., Kamino and Yield Guild go up and down completely randomly.

Pair Corralation between Kamino and Yield Guild

Assuming the 90 days trading horizon Kamino is expected to generate 1.34 times more return on investment than Yield Guild. However, Kamino is 1.34 times more volatile than Yield Guild Games. It trades about -0.04 of its potential returns per unit of risk. Yield Guild Games is currently generating about -0.2 per unit of risk. If you would invest  14.00  in Kamino on November 27, 2024 and sell it today you would lose (5.80) from holding Kamino or give up 41.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Kamino  vs.  Yield Guild Games

Kamino

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kamino has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Kamino shareholders.

Yield Guild Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yield Guild Games has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Yield Guild Games shareholders.

Pair Trading with Kamino and Yield Guild

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

The idea behind Kamino and Yield Guild Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.