Correlation Between KwikClick and LZG International

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

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

Diversification Opportunities for KwikClick and LZG International

-0.06

Correlation Coefficient

KwikClick  LZG International

Good diversification

The 3 months correlation between KwikClick and LZG is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and LZG International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LZG 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 LZG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LZG International has no effect on the direction of KwikClick i.e., KwikClick and LZG International go up and down completely randomly.

Pair Corralation between KwikClick and LZG International

Given the investment horizon of 90 days KwikClick is expected to generate 1.71 times more return on investment than LZG International. However, KwikClick is 1.71 times more volatile than LZG International. It trades about 0.08 of its potential returns per unit of risk. LZG International is currently generating about 0.12 per unit of risk. If you would invest  6.50  in KwikClick on December 30, 2024 and sell it today you would earn a total of  0.51  from holding KwikClick or generate 7.85% return on investment over 90 days.

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

KwikClick  vs.  LZG International

KwikClick

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KwikClick are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, KwikClick disclosed solid returns over the last few months and may actually be approaching a breakup point.

LZG International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LZG International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, LZG International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KwikClick and LZG International

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

The idea behind KwikClick and LZG International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.