Correlation Between KwikClick and AB International
Can any of the company-specific risk be diversified away by investing in both KwikClick and AB International 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 KwikClick and AB International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KwikClick and AB International Group, you can compare the effects of market volatilities on KwikClick and AB International 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 KwikClick with a short position of AB International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KwikClick and AB International.
Diversification Opportunities for KwikClick and AB International
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KwikClick and ABQQ is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and AB International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB International and KwikClick 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 KwikClick are associated (or correlated) with AB International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB International has no effect on the direction of KwikClick i.e., KwikClick and AB International go up and down completely randomly.
Pair Corralation between KwikClick and AB International
Given the investment horizon of 90 days KwikClick is expected to generate 20.13 times less return on investment than AB International. But when comparing it to its historical volatility, KwikClick is 1.34 times less risky than AB International. It trades about 0.01 of its potential returns per unit of risk. AB International Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.07 in AB International Group on September 10, 2024 and sell it today you would earn a total of 0.02 from holding AB International Group or generate 28.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
KwikClick vs. AB International Group
Performance |
Timeline |
KwikClick |
AB International |
KwikClick and AB International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KwikClick and AB International
The main advantage of trading using opposite KwikClick and AB International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KwikClick position performs unexpectedly, AB International 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 AB International will offset losses from the drop in AB International's long position.KwikClick vs. 01 Communique Laboratory | KwikClick vs. LifeSpeak | KwikClick vs. RESAAS Services | KwikClick vs. RenoWorks Software |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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