Correlation Between Kumwell Public and Kingsmen CMTI

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

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

Diversification Opportunities for Kumwell Public and Kingsmen CMTI

0.0

Correlation Coefficient

Kumwell Public  Kingsmen CMTI

Pay attention - limited upside

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

Pair Corralation between Kumwell Public and Kingsmen CMTI

If you would invest  0.00  in Kumwell Public on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Kumwell Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Kumwell Public  vs.  Kingsmen CMTI Public

Kumwell Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kumwell Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Kumwell Public is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kingsmen CMTI Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kingsmen CMTI Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Kumwell Public and Kingsmen CMTI

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

The idea behind Kumwell Public and Kingsmen CMTI Public 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .