Correlation Between KwikClick and Balincan USA

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

By analyzing existing cross correlation between KwikClick and Balincan USA, you can compare the effects of market volatilities on KwikClick and Balincan USA 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 Balincan USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KwikClick and Balincan USA.

Diversification Opportunities for KwikClick and Balincan USA

0.42

Correlation Coefficient

KwikClick  Balincan USA

Very weak diversification

The 3 months correlation between KwikClick and Balincan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and Balincan USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balincan USA 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 Balincan USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balincan USA has no effect on the direction of KwikClick i.e., KwikClick and Balincan USA go up and down completely randomly.

Pair Corralation between KwikClick and Balincan USA

If you would invest  18.00  in KwikClick on September 9, 2024 and sell it today you would lose (8.01) from holding KwikClick or give up 44.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

KwikClick  vs.  Balincan USA

KwikClick

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KwikClick has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak forward indicators, KwikClick may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Balincan USA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with KwikClick and Balincan USA

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

The idea behind KwikClick and Balincan USA 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.