Correlation Between Kneomedia and JCurve Solutions

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

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

Diversification Opportunities for Kneomedia and JCurve Solutions

0.0

Correlation Coefficient

Kneomedia  JCurve Solutions

Pay attention - limited upside

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

Pair Corralation between Kneomedia and JCurve Solutions

If you would invest  2.60  in JCurve Solutions on December 28, 2024 and sell it today you would lose (0.10) from holding JCurve Solutions or give up 3.85% of portfolio value over 90 days.

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

Kneomedia  vs.  JCurve Solutions

Kneomedia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kneomedia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Kneomedia is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

JCurve Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days JCurve Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, JCurve Solutions is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kneomedia and JCurve Solutions

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

The idea behind Kneomedia and JCurve Solutions 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.