Correlation Between Kinaxis and Spin Master

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

By analyzing existing cross correlation between Kinaxis and Spin Master Corp, you can compare the effects of market volatilities on Kinaxis and Spin Master 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 Kinaxis with a short position of Spin Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and Spin Master.

Diversification Opportunities for Kinaxis and Spin Master

0.0

Correlation Coefficient

Kinaxis  Spin Master

Pay attention - limited upside

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

Pair Corralation between Kinaxis and Spin Master

If you would invest  16,244  in Kinaxis on October 27, 2024 and sell it today you would earn a total of  1,389  from holding Kinaxis or generate 8.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kinaxis  vs.  Spin Master Corp

Kinaxis

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Kinaxis displayed solid returns over the last few months and may actually be approaching a breakup point.

Spin Master Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kinaxis and Spin Master

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

The idea behind Kinaxis and Spin Master Corp 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.