Correlation Between KwikClick and Duesenberg Technologies

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

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

Diversification Opportunities for KwikClick and Duesenberg Technologies

0.0

Correlation Coefficient

KwikClick  Duesenberg Technologies

Pay attention - limited upside

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

Pair Corralation between KwikClick and Duesenberg Technologies

Given the investment horizon of 90 days KwikClick is expected to generate 5.56 times less return on investment than Duesenberg Technologies. But when comparing it to its historical volatility, KwikClick is 4.7 times less risky than Duesenberg Technologies. It trades about 0.05 of its potential returns per unit of risk. Duesenberg Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  7.00  in Duesenberg Technologies on September 10, 2024 and sell it today you would lose (6.99) from holding Duesenberg Technologies or give up 99.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KwikClick  vs.  Duesenberg Technologies

KwikClick

Risk-Adjusted Performance

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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.

Duesenberg Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duesenberg Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Duesenberg Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KwikClick and Duesenberg Technologies

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

The idea behind KwikClick and Duesenberg Technologies 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.