Correlation Between KwikClick and Pushfor Investments

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

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

Diversification Opportunities for KwikClick and Pushfor Investments

-0.44

Correlation Coefficient

KwikClick  Pushfor Investments

Very good diversification

The 3 months correlation between KwikClick and Pushfor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding KwikClick and Pushfor Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pushfor Investments 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 Pushfor Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pushfor Investments has no effect on the direction of KwikClick i.e., KwikClick and Pushfor Investments go up and down completely randomly.

Pair Corralation between KwikClick and Pushfor Investments

Given the investment horizon of 90 days KwikClick is expected to generate 1.28 times more return on investment than Pushfor Investments. However, KwikClick is 1.28 times more volatile than Pushfor Investments. It trades about 0.08 of its potential returns per unit of risk. Pushfor Investments is currently generating about 0.07 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

KwikClick  vs.  Pushfor Investments

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.

Pushfor Investments

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pushfor Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Pushfor Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KwikClick and Pushfor Investments

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

The idea behind KwikClick and Pushfor Investments 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.