Correlation Between Kontrol Technologies and Grid Dynamics
Can any of the company-specific risk be diversified away by investing in both Kontrol Technologies and Grid Dynamics 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 Kontrol Technologies and Grid Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontrol Technologies Corp and Grid Dynamics Holdings, you can compare the effects of market volatilities on Kontrol Technologies and Grid Dynamics 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 Kontrol Technologies with a short position of Grid Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrol Technologies and Grid Dynamics.
Diversification Opportunities for Kontrol Technologies and Grid Dynamics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kontrol and Grid is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kontrol Technologies Corp and Grid Dynamics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grid Dynamics Holdings and Kontrol Technologies 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 Kontrol Technologies Corp are associated (or correlated) with Grid Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grid Dynamics Holdings has no effect on the direction of Kontrol Technologies i.e., Kontrol Technologies and Grid Dynamics go up and down completely randomly.
Pair Corralation between Kontrol Technologies and Grid Dynamics
Assuming the 90 days horizon Kontrol Technologies Corp is expected to generate 1.74 times more return on investment than Grid Dynamics. However, Kontrol Technologies is 1.74 times more volatile than Grid Dynamics Holdings. It trades about 0.02 of its potential returns per unit of risk. Grid Dynamics Holdings is currently generating about -0.18 per unit of risk. If you would invest 12.00 in Kontrol Technologies Corp on December 27, 2024 and sell it today you would earn a total of 0.00 from holding Kontrol Technologies Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Kontrol Technologies Corp vs. Grid Dynamics Holdings
Performance |
Timeline |
Kontrol Technologies Corp |
Grid Dynamics Holdings |
Kontrol Technologies and Grid Dynamics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kontrol Technologies and Grid Dynamics
The main advantage of trading using opposite Kontrol Technologies and Grid Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontrol Technologies position performs unexpectedly, Grid Dynamics 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 Grid Dynamics will offset losses from the drop in Grid Dynamics' long position.Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
Grid Dynamics vs. ExlService Holdings | Grid Dynamics vs. ASGN Inc | Grid Dynamics vs. WNS Holdings | Grid Dynamics vs. Gartner |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |