Correlation Between KwikClick and Imageware Sys

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

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

Diversification Opportunities for KwikClick and Imageware Sys

-0.17

Correlation Coefficient

KwikClick  Imageware Sys

Good diversification

The 3 months correlation between KwikClick and Imageware is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and Imageware Sys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imageware Sys 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 Imageware Sys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imageware Sys has no effect on the direction of KwikClick i.e., KwikClick and Imageware Sys go up and down completely randomly.

Pair Corralation between KwikClick and Imageware Sys

If you would invest  0.10  in Imageware Sys on September 11, 2024 and sell it today you would earn a total of  0.00  from holding Imageware Sys or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

KwikClick  vs.  Imageware Sys

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 latest weak performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Imageware Sys

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imageware Sys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Imageware Sys is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with KwikClick and Imageware Sys

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

The idea behind KwikClick and Imageware Sys 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..