Correlation Between Kaspien Holdings and TSR

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

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

Diversification Opportunities for Kaspien Holdings and TSR

-0.59

Correlation Coefficient

Kaspien Holdings  TSR

Excellent diversification

The 3 months correlation between Kaspien and TSR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kaspien Holdings and TSR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSR Inc and Kaspien Holdings 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 Kaspien Holdings are associated (or correlated) with TSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSR Inc has no effect on the direction of Kaspien Holdings i.e., Kaspien Holdings and TSR go up and down completely randomly.

Pair Corralation between Kaspien Holdings and TSR

Given the investment horizon of 90 days Kaspien Holdings is expected to under-perform the TSR. In addition to that, Kaspien Holdings is 2.32 times more volatile than TSR Inc. It trades about -0.07 of its total potential returns per unit of risk. TSR Inc is currently generating about 0.04 per unit of volatility. If you would invest  943.00  in TSR Inc on October 25, 2024 and sell it today you would earn a total of  395.00  from holding TSR Inc or generate 41.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	26.86%
Values	Daily Returns

Kaspien Holdings  vs.  TSR Inc

Kaspien Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaspien Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Kaspien Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

TSR Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kaspien Holdings and TSR

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

The idea behind Kaspien Holdings and TSR 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.